Microsoft and Sun Microsystems reached a $1,6-billion antitrust and patent settlement on Friday, resolving longstanding legal issues between the two bitter tech rivals.
Under the settlement, Microsoft will pay $700-million to resolve pending antitrust issues and $900-million to resolve patent issues.
”This agreement launches a new relationship between Sun and Microsoft — a significant step forward that allows for cooperation while preserving customer choice,” Scott McNealy, chairperson and chief executive officer of Sun Microsystems, said in a statement.
He added the pact will ”stimulate new products, delivering great new choices for customers who want to combine server products from multiple vendors and achieve seamless computing in a heterogeneous computing environment”.
”Our companies will continue to compete hard, but this agreement creates a new basis for cooperation that will benefit the customers of both companies,” Microsoft CEO Steve Ballmer said in a statement.
Separately, Microsoft will make an up-front royalty payment of $350-million for use of each other’s technology and Sun will make payments when this technology is incorporated into its server products, the companies said. — Sapa-AFP