Microsoft has decided to soften its approach in its disagreement with Canadian teenager, Mike Rowe and his domain name.

Microsoft spokesman Jim Desler told Reuters last night: "We take our trademark seriously, but in this case a little too seriously."

Desler added that the company is "currently resolving this matter in a way that will be fair to Rowe and satisfy our obligations under trademark law."

This follows Microsoft demanding Rowe relinquish the domain name as it claimed the 17-year old to be "infringing copyright".

The software giant offered Rowe $10 in compensation – the teen Netizen rejected the offer and demanded $10,000 eliciting accusations from the dominant OS manufacturer that he was trying to force a larger settlement.

Reuters adds that the case has generated so much media attention the teenager has had to move his Web site to a larger capacity ISP.

"I never expected this type of feedback. I have put up a defence fund so that I can hire a lawyer to guide me through the process of talking to Microsoft," the boy said.