TomTom to pay Microsoft to end patent fight

Mar 30, 2009

(AP) -- Microsoft Corp., the world's largest software maker, on Monday said it settled a patent dispute over car navigation technology with TomTom NV for an undisclosed amount.

In February, filed lawsuits in U.S. District Court in Washington and with the International Trade Commission against TomTom NV and its U.S. subsidiary, TomTom Inc., claiming their car navigation systems infringed on patented technology that let vehicle computer systems run more than one application at a time, provide more natural driving directions and access the Internet, among other functions.

TomTom filed a countersuit earlier this month against Microsoft in U.S. District Court in Virginia, saying the maker's Streets and Trips products for PCs infringe on four TomTom patents.

Under the terms of the five-year settlement, Redmond, Wash.-based Microsoft said TomTom will pay the software maker for use of eight patents. Microsoft will get coverage for the four TomTom patents without paying anything to the Amsterdam, Netherlands-based company.

The agreement covers past and future U.S. sales of both companies' products.

The deal also requires TomTom to remove some functions from its products within two years, including functionality related to naming, organizing and storing file data.

The companies said this allows TomTom to comply with its obligations as a member of the software community. Open source licenses vary, but generally require companies that build products with open source software to make all the resulting code available to the community. Microsoft's proprietary business model bars companies from releasing its patented code free of charge.

Shares of Microsoft fell 64 cents, or 3.5 percent, to $17.49 in afternoon trading amid a broader market sell-off.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Are Silicon Valley tech giants real innovators or spoilt rich kids?

add to favorites email to friend print save as pdf

Related Stories

Burst.com files counterclaim against Apple

Apr 18, 2006

Burst.com Inc. announced it has filed a counterclaim alleging that Apple's iTunes Music Store, iTunes software, iPods, and Apple QuickTime applications has infringed on four of Burst's 10 U.S. patents.

Apple files 2nd countersuit against Creative

Jun 08, 2006

(AP) -- Apple Computer Inc. has filed a second countersuit against SIngapore-based Creative Technology Ltd., intensifying its legal battle against the smaller media player rival that sued the iPod maker for ...

Recommended for you

Turner channels removed from Dish amid pact spat

20 hours ago

Channels such as Cartoon Network and CNN are no longer part of Dish's programming lineup as a deadline has passed for the satellite TV provider and Turner Broadcasting to renew their distribution agreement.

Verizon reports higher 3Q net income, revenue

21 hours ago

Verizon Communications Inc. on Tuesday reported higher net income and revenue in its third quarter, helped by strong wireless subscriber growth and demand for its high-speed FiOS Internet services.

User comments : 0