IBM and Microsoft shake over OS/2 spat

By Steve Malone

Posted on 4 Jul 2005 at 10:45

Microsoft has finally settled its long-running dispute in its bitter battle with IBM over the fate of the OS/2 operating system.

In order to settle the judgement of U.S. District Judge Thomas Penfield Jackson in the anti-trust case of the mid-1990s Microsoft has agreed to pay IBM $775 million and provide a $75 million credit note towards Microsoft software bought by Big Blue.

The settlement covers all discriminatory pricing and overcharge claims relating to OS/2 and SmartSuite. The settlement does not cover IBM's claims over damage to its hardware and software server businesses although the two parties have agreed to delay any settlement for two years whilst they discuss terms and IBM will not seek to recover any damage incurred before June 30th 2002.