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Microsoft Settles with IBM
Payment of $775 Million Closes Dispute

Microsoft moved a step closer to tying up all its litigational loose ends with a $775 million agreement with IBM. Over the past few years, the company had previously settled its case with the U.S. government over its business practices and made amends with Sun Microsystems over its use of the Java programming language.

Now there is just one major U.S. legal action still facing the company, an antitrust suit filed by RealNetworks, Inc., which Microsoft has tried to crush through its Windows Media Player. Its confrontation with the European Union remains, the current state of which involves Microsoft paying a multi-billion Euro fine.

"With these particular issues with IBM resolved, we can avoid protracted litigation that really could have lasted years," a Microsoft spokesperson reportedly said.

The IBM dispute arose from IBM's apparently unwise decision years ago to pursue its OS/2 operating system, considered technically superior to Microsoft Windows at that time, but to see it founder in the marketplace as Microsoft aggressively pursued hardware vendors in its quest to make Windows the only operating system in the Intel-based PC market. Windows won out in a big way, and although OS/2 is still offered and supported by IBM, it was effectively relegated to the dustbin of PC history many years ago.


About .NETDJ News Desk
.NETDJ News Desk monitors Microsoft .NET and its related technologies, including Silverlight, to present IT professionals with news, updates on technology advances, business trends, new products and standards, and insight.

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icrosoft moved a step closer to tying up all its litigational loose ends with a $775 million agreement with IBM. Over the past few years, the company had previously settled its case with the U.S. government over its business practices and made amends with Sun Microsystems over its use of the Java programming language. Now, it appears that it is done with its major legal hassles in North America, yet its confrontation with the European Union remains.




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