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PRNewswire: Microsoft Reaches Agreement to Settle Contract Dispute With Sun Microsystems

Jan 24, 2001, 01:45 (4 Talkback[s])

Microsoft Corp. today announced an agreement with Sun Microsystems to settle both the October 1997 lawsuit filed by Sun and the Microsoft counter suit in the dispute over the Java technology license agreement between the two companies.

The technology license and distribution agreement was signed by the parties in March 1996 and was due to expire in two months. Under the terms of the settlement, the existing technology license agreement between the two companies is terminated. Microsoft can continue to ship all current products and those in beta containing Sun's technology for a period of seven years and in return agrees to pay Sun $20 million. Microsoft agreed not to use Sun's Java Compatible trademark, which it has not done since 1998.

The license agreement and the settlement agreement confirm Microsoft's freedom to independently develop technology that competes with Sun's technology.

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