Redmond, Wash., and Armonk, N.Y. – July 1 /PRNewswire-FirstCall/ — Microsoft
Corp. and IBM today announced that they have entered into an agreement to resolve
antitrust issues between the two companies.
Today’s settlement resolves claims arising from the United States v. Microsoft
antitrust case in the mid-1990s, where IBM was identified in U.S. District Judge
Thomas Penfield Jackson’s findings of fact as having been impacted in its business
by certain Microsoft practices. Under the agreement, Microsoft will pay IBM $775
million and extend $75 million in credit towards deployment of Microsoft software
In addition to addressing all discriminatory pricing and overcharge claims based
on the findings in the U.S. antitrust case, the settlement resolves all antitrust
claims, including claims related to the IBM OS/2 operating system and SmartSuite
products, with the exception of claims for harm to IBM’s server hardware and server
software businesses. IBM has further 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 June 30, 2002. Microsoft
also releases antitrust claims.
In November 2003, Microsoft and IBM entered into tolling agreements extending
the statute of limitations on antitrust claims based on the U.S. antitrust case
while exploring resolutions that would avoid protracted litigation. Microsoft’s
and IBM’s tolling agreement was set to expire in July and the parties engaged
in settlement discussions during the last two months.
“With these antitrust issues behind us, both Microsoft and IBM can move ahead,
at times cooperatively and at times competitively, to bring the best products
and services to customers,” said Brad Smith, general counsel and senior vice president,
Microsoft. “Over the last few years we have been focused on resolving our disputes
with other companies, and today’s announcement takes another significant step
towards achieving that goal.”
“IBM is pleased that we have amicably resolved these long standing issues,” said
Ed Lineen, senior vice president and general counsel, IBM.