Microsoft said yesterday that Philips agreed to use the US firm's software for playing digital audio and video on the Dutch electronics maker's semiconductors and consumer electronics products. Under the non-exclusive deal, Philips said it will support the Windows Media digital content format as well as Microsoft's digital rights management (DRM) technology in its portable music and video players.

DRM allows users to download songs and play them on various devices while protecting copyright holders from piracy and theft.

Philips also said it will build support for Windows Media and DRM into its multimedia semiconductors, which are used in various devices, including digital music players, TV set-top boxes and video-enabled mobile phones.

"I think we'll see big growth in this market," said Frans van Houten, president and CEO of Philips Semiconductors. "Our collaboration is timely."