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View Full Version : Sun settles with Microsoft for $2bn (ish)


laracroft8290
02-04-04, 17:35
Sun Microsystems and Microsoft are to stop sueing each other for ten years, in a settlement which will see Sun trouser almost $2bn.

The bitter rivals have signed a technology collaboration pact to get their products to work better together; and they have settled all outstanding litigation. They have also come to terms on patents and "other issues".

Microsoft is to pay $700m to Sun to settle anti-trust issues and $900m to resolve patent issues. It is also making an up-front payment of $350m to Sun to cover patent royalties for server products. Sun and Microsoft will pay royalties from here on in for use of each other's technology. Oh, and Microsoft will be nice to Java, in future.

This is a huge win for Sun, which today announced that it is firing 3,300 staff to bring costs under control. Remember, just a week or so ago, the company issued a statement applauding the EC's Microsoft anti-trust ruling. But today, CEO Scott McNealy is magnanimous in victory. Here is the canned quote, bereft of a single soundbite, which goes to show just how important this deal is to the company.

"This agreement will be of significant benefit to both Sun and Microsoft customers. It 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. We look forward to this opportunity - it provides a framework for cooperation between Sun and Microsoft going forward."

Steve Ballmer, Microsoft's CEO, makes a better fist of it - just:

"Our companies will continue to compete hard, but this agreement creates a new basis for cooperation that will benefit the customers of both companies. This agreement recognizes that cutting edge R&D and intellectual property protection are the foundation for the growth and success of our industry. This is a positive step forward for both Sun and Microsoft, but the real winners are the customers and developers who rely on our products and innovations."

Agreement details are available via The Register (http://www.theregister.co.uk/content/53/36770.html)