Microsoft has settled one anti-trust lawsuit for an estimated $275m (£167m) a week before it is due to respond to accusations from the United States government that it is a monopoly and harms consumers.

Analysts said yesterday that Microsoft's settlement with Caldera, a small Utah-based software company, could indicate a greater willingness to reach agreement before going to court.

However, settlement with the department of justice is expected to be much harder to reach because of the scale of the landmark action.

The government indicated a desire for substantial remedies at the outset of the settlement talks, which started last month. Microsoft is to present its case against the findings of Judge Thomas Penfield Jackson next week.

On reaching a settlement with Caldera Tom Burt, Microsoft's general counsel, said: "We are pleased to put this issue behind us.

"Rather than litigating, we prefer to focus on building great software for our customers in this dynamic and competitive industry."

On the same day as the settlement was announced Caldera Systems - sister company to Caldera, which trades under the Lineo name - filed to list on the stock exchange. Caldera Systems aims to raise $57.5m with its initial public offering later this year.