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.