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Apple agreed to settle a patent dispute with Burst.com, ending two years of litigation. Burst agreed not to sue Apple over current or pending DVR patents.

Under the agreement, Apple will pay Burst.com $10 million and get access to Burst.com’s patent portfolio, with some exceptions. Apple won’t have access to four of Burst.com’s current and pending patents, including three pending patents relating to digital video recorder (DVR) technology. Court costs, expenses and attorney’s fees will reduce the proceeds to Burst.com to $4.6 million.

Burst alleges that Apple infringed four patents for transmission of compressed audio and video files in iTunes, iLife, QuickTime and the iPod.

Apple was asked by Burst in 2004 to license some of its patents, saying they were at the pioneering heart of the iPod. In January 2006, Apple sued Burst.com in the U.S. District Court for the Northern District of California, seeking a judgment that the Burst.com patents were invalid and not infringed upon. Burst.com countersued in April 2006, alleging that Apple infringed four of its patents.

Bust also won a $60 million financial settlement from Microsoft in 2005 after a patent dispute over the transmission of music and video with its Windows Media Player.

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