Microsoft coughs up $1.6bn in Sun settlement

Sun Microsystems has reached a landmark settlement with rival Microsoft that will give Sun $1.6bn (€1.32bn).

Under the settlement, Microsoft will have to pay $700m (€578.2m) to settle pending antitrust issues, and $900m (€743.4m) to resolve patent disputes with Sun.

The deal calls for Microsoft to make an upfront royalty payment of $350m (€289.1m) for use of Sun technology, raising the total to $1.95bn (€1.61bn).

Sun is to make payments when Microsoft technology is incorporated into its server products, the companies said.

Sun also warned today on its current, third-quarter profit forecasts and said it would cut 3,300 jobs in a cost-cutting move, taking $475m (€392.3m) in charges over the next several quarters because of cuts.

The company had more than 36,000 employees at the end of 2003.

Sun employs around 220 people at its Dublin base in East Point business park.