Sun Microsystems and Microsoft have announced today that they were entering into a "broad co-operation agreement" together and would settle all current legal activity between the two companies.
Microsoft will be paying out $900 million dollars to resolve current patient issues, $700 million to settle the anti-trust issues and a further $350 million to cover patient royalties for server products up-front.
Both companies will now pay each other royalties whenever they use the technology of their rivals.
This deal will allow technical collaboration between the both companies with access to each others server-based technology. It also allows Sun to licence some of Microsoft's protocols and will allow Microsoft to provide support for the Microsoft Java Virtual Machine that is currently employed in Microsoft's products.
Steve Ballmer, CEO of Microsoft said,
"Our companies will continue to compete hard, but this agreement creates a new basis for co-operation 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."
Scott McNealy, Chairman and CEO of Sun Microsystems resisted jumping up and down with a huge grin about the $2 billion settlement but instead said,
"This agreement launches a new relationship between Sun and Microsoft -- a significant step forward that allows for co-operation while preserving customer choice."
"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 co-operation between Sun and Microsoft going forward."
Lets hope this collaboration lasts.
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