Microsoft will pay Sun Microsystems a total of $1.6 billion to settle a long-standing set of legal disputes, the companies said Friday.

Under the settlement, Microsoft said it will pay Sun $700 million to resolve antitrust issues and $900 million to resolve patent litigation.

Sun and Microsoft have also agreed to pay royalties to use each other's technology, with Microsoft making an up-front payment of $350 million and Sun making payments when this technology is incorporated into its server products.

Meanwhile, Sun said it will cut 3,300 jobs and take a $475 million charge as it looks to cut costs and return to profitability. The company said it will spread the charge over several quarters, including $200 million in its third quarter.

By: DocMemory
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