Microsoft Corp. and Walt Disney Co. said they would work together to develop new ways of securely distributing digital entertainment via the Internet, on portable devices and on future versions of the DVD, Monday's Wall Street Journal reported.

Under a multiyear agreement, Disney agreed to license Microsoft's Windows Media, a technology used for playing back digital files that includes safeguards to prevent content from being illegally copied and used.

The two companies also have agreed to collaborate on a broad set of issues related to electronic distribution of entertainment. The areas include developing secure content for use on future high-definition DVDs and Microsoft's Portable Media Center, a hand-held device for playing back movies and music that goes on sale late this year.