Spyglass Inc., an Internet software developer, says it has accepted $8 million from Microsoft Corp. to settle a royalty dispute.

Spyglass on Wednesday said it will receive from Microsoft, the computer software giant, $7.5 million in cash and $500,000 in software and services as a result of the one-time royalties buyout.

Microsoft in 1995 licensed Spyglass’ Mosaic technology for its Internet Explorer browser. Microsoft has been giving Explorer away free to boost its share of the browser market, the Chicago Sun-Times reported today.

Spyglass, based in this suburb west of Chicago, also reported its first earnings loss since going public in June 1995. Spyglass reported losing $1.5 million in the first quarter, compared with earnings of $842,000, or 7 cents a share, during the same period a year ago.