As Microsoft most likely loses the case over owning the patents for embedded controls within a browser, they've planned to no longer allow applets to run by default. By changing the way the IE browser loads embedded ActiveX controls, they avoid infringement on a patent held by Eolas Technologies.

"After a forthcoming update, Microsoft Internet Explorer users will not be able to directly interact with Microsoft ActiveX controls loaded by the APPLET, EMBED, or OBJECT elements. Users will be able to interact with such controls after activating their user interfaces," said a post on the Microsot Developer's Network Web site.

In 2003 Microsoft was sued under the allegation that their IE's plug-in architecture - ActiveX, infringed on Eolas' patent. The company was then awarded $520 million dollars which have continuously increased to $560 million because of Microsoft's efforts to appeal the ruling, which failed. The latest appeals came last month when Microsoft appealed to the Supreme Court, which ended abruptly when the Court refused to hear the case.

In January 2006, as part of the regular updates, Microsoft plans on changing the way users interact with sites that use ActiveX controls. The update reportedly covers Internet Explorer on Windows 2000, XP and Windows Server 2003. Internet Explorer 7 and Windows Vista will also include the change.