A less aggressive Microsoft has struck a deal with Canadian teenager Mike Rowe in which the teenage techie will get a free Xbox, a Redmond holiday and some training.

In exchange, Microsoft gains the www.MikeRowe.soft domain name. The giant software company attracted global publicity last week when it threatened to sue Rowe over his registration and use of a domain name.

Microsoft legal had threatened Rowe with legal action, demanded he transfer ownership of the domain to Microsoft and had offered him just $10.

Under the new deal, Microsoft has also agreed to help Rowe set up a brand new Web site – www.MikeRoweForums.com. Rowe has agreed to return any money donated to his defence fund.

Microsoft spokesman Jim Desler told the Seattle Post: "I think our initial step was perhaps a bit too impersonal," and observed the company's desire to "do things in a way that would foster his interest in technology."