Microsoft will pay the computer maker $150 million over the next four years for the marketing and development of Gateway products that can run its software, in exchange for Gateway dropping all antitrust claims based on past conduct, they said.

The deal was reached in recent mediation between the parties, and comes as part of what appears to be a broad effort by Microsoft to settle its various legal issues.

The dispute originated in the mid-1990s during the U.S. antitrust case against Microsoft when U.S. District Judge Thomas Penfield Jackson identified Gateway as having its business negatively affected by Microsoft's dominance in the desktop software market. The statute of limitations for Gateway to bring claims against Microsoft based on this finding expired in late 2003, but the companies entered an agreement before that time to extend the period so that they could negotiate a resolution.

Although Microsoft has agreed to provide Gateway with "periodic payments" totaling $150 million, the Redmond, Washington, company denies any liability.

Gateway chief executive officer Wayne Inouye said in a statement that his company is happy to put the matter behind it and looks forward to greater cooperation with Microsoft.

By: DocMemory
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