REDMOND, Wash., Aug. 9 (AP) - Scott Richter, who was once accused of being one of the world's top three spammers, has agreed to pay $7 million in a settlement with Microsoft.
The money from Mr. Richter and his company, OptInRealBig.com of Westminster, Colo., is to be used to expand efforts to combat the illegal sending of unsolicited and misleading e-mail messages and other computer misuse, Microsoft's chief counsel, Bradford L. Smith, said in a statement Tuesday.
"This settlement is a victory for consumers who rely on the Internet because it also means fewer unwanted e-mails in your inbox," Mr. Smith said.
"After covering our legal expenses for the case, Microsoft will then reinvest every penny from this settlement," he said. "We'll dedicate $5 million to increase our Internet enforcement efforts and expand technical and investigative support to help law enforcement address computer-related crimes."
The company also pledged $1 million to expand computer access for the poor at community centers in New York State.
The settlement depends on the dismissal of bankruptcy petitions that Mr. Richter and his four-year-old company have filed in United States Bankruptcy Court in Denver.
Mr. Richter and his affiliated businesses also agreed to comply with federal and state laws.
Another provision calls for three years of oversight of Mr. Richter's operations.
The agreement is the second involving litigation brought by Microsoft in King County Superior Court in Seattle and by the New York attorney general, Eliot Spitzer, in State Supreme Court in Manhattan.
"Spam traps" set by Microsoft in May and June 2003 netted 8,000 messages containing 40,000 fraudulent statements, Mr. Spitzer said at the time, describing Mr. Richter as one of the three biggest spammers in the world.
In a settlement announced July 19, Mr. Richter and OptInRealBig.com agreed to pay New York State $50,000 in penalties and investigation costs.
