14 DAY TRIAL // Microsoft managed to cut a price tag of no less than half a billion dollars on Internet Explorer via a legal settlement with Eolas Technologies, a research company backed by the University of California. Mark Swords, Eolas Technologies Chief Operating Officer announced in a letter to the company's shareholders that the two companies had finally managed to find the common terms necessary for a settlement. The initial legal action brought against Microsoft by Eolas Technologies dates all the way back to 1999 and the Redmond company has been looking at legal payoffs of no less than $521 million. A jury decided that Microsoft was indeed infringing on a patent owned by Eolas Technologies and the University of California, with the technology in Internet Explorer related to the way the browser manages applications and plug-ins while displaying web pages.
"We are pleased to inform you that Eolas Technologies Inc. and Microsoft Corporation settled all claims between them in the Eolas Technologies Inc. and The Regents of the University of California v. Microsoft Corporation litigation on August 24, 2007. the Settlement Agreement prohibits Microsoft and Eolas from disclosing the terms of the settlement. We hope that you will understand we simply cannot now or in the future provide any confidential details regarding the terms of the settlement," Swords revealed in a letter published by SeattlePI.
Microsoft confirmed that indeed the two companies reached a settlement but a representative from the company declined to comment further. In June, the Redmond company was permitted to argue the validity of the patent held by Eolas Technologies related to the integration of ActiveX in Internet Explorer. This move seems to have pushed Eolas Technologies into a corner and forced it to deal directly with Microsoft after for more than eight years the lawsuit dragged along. While the financial terms remain undisclosed it is safe to assume that Microsoft did not cough up anywhere near the original $521 million.
"The litigation with Microsoft has taken a great deal of management time and effort and significant financial resources. We are pleased the we now can focus our resources on commercializing our existing intellectual property portfolio and developing new fundamental technologies. During the next several weeks, the management team will complete planning the Eolas' post-litigation strategy and budget," Swords added. "Although the Eolas Board of Directors has not determined the amount of the per share dividend that will be paid to the Common Stock shareholders, the Board anticipates paying a dividend of between $60 and 472 per share."