August 30, 2007
Microsoft settles with Eolas
The patent dispute, which began in 1999 when Eolas charged Microsoft with using patented technology in Internet Explorer, has been settled out of court
Recommend ThisMicrosoft and Eolas have settled their long-running legal battle, according to a letter sent to Eolas shareholders.
The letter, posted on the Seattle Post-Intelligencer Web site, says that the companies settled on Aug. 24 but will not disclose terms of the settlement. On Sept. 4, Eolas plans a shareholder meeting and will discuss information from the settlement that it is allowed to disclose as well as future business plans for the company.
The letter, signed by Eolas CEO Mark Swords, also says that the company plans to pay a dividend of between $60 and $72 per share to shareholders.
A Microsoft spokesman could not immediately comment on the settlement and Eolas has not replied to a request for further comment.
The suit, first filed by Eolas in 1999, charged Microsoft with infringing on Eolas patents in its Internet Explorer browser. The patent relates to embedding interactive content in Web sites.
Eolas won an initial $500 million judgment but appeals by Microsoft resulted in further investigation into the patent's validity. In late July, the companies said that they were working to settle the case.
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