Microsoft to pay damages

Microsoft and IBM have announced an end to the antitrust battle

Microsoft and IBM have announced an end to the antitrust battle that has dogged them for a decade, with the software vendor agreeing to pay $775m to IBM in damages.

The settlement resolves claims arising from the US v. Microsoft antitrust case in the mid-1990s, in which IBM was identified as having been “impacted in its business by certain Microsoft practices”.

IBM has agreed “subject to certain limitations” that it will not assert claims for server monetary damages for two years, and will not seek to recover damages on such claims incurred prior to 30 June 2002.

Brad Smith, general counsel and senior vice-president at Microsoft, said: “We have been focused on resolving our disputes with other companies, and today’s announcement takes another significant step towards achieving that goal.”

Ed Lineen, senior vice-president and general counsel at IBM, added: “IBM is pleased that we have amicably resolved these long-standing issues.”