Latest news - Microsoft & Sun Micro Systems Peace Treaty

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Latest news - Microsoft & Sun Micro Systems Peace Treaty
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Date: 5/1/2004 12:00:00 AM

   Microsoft Corporation and Sun Micro Systems have decided to bridge their differences and settled their disputes. Both the companies have entered into a long 10 year agreeement and resolved their differences amicably.

   Microsoft has agreed to pay $700 million to Sun Micro Systems for the anti-trust issues and $900 million to resolve the patent issues. Both the companies decided to pay royalty for using each others technology going forward, with Microsoft making an upfront payment of $350 million for using Sun's technology.


   Scott McNealy, chairman and CEO, Sun Microsystems, Inc. said "This agreement launches a new relationship between Sun and Microsoft, a significant step forward that allows for cooperation while maintaining customer preferences, this agreement will be of good 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 for it provides a framework for cooperation between Sun and Microsoft going forward."

   Both the companies CEO's Steve Balmer and Scott Mcnealy vetted an agreement with the following major elements.
  1. Technical Collaboration
  2. Microsoft Communications Protocol Program licence agreement will be signed by Sun
  3. Microsoft Support for Java to be continued
  4. Future Collaboration for Java and .NET
  5. Patents and Intellectual Property of old issues will not be brought up again
  6. All current lawsuits will be terminated
     
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