Microsoft will pay a $ 777 million fine to solve the anti trust claims with IMB and $75 million in credits for deploying its software at International Business Machines Corp., according to Business Week.

As IBM agreed not press charges for server monetary damages for two years and won't claim any damages for all activities prior to June 30, 2002, Microsoft released all its antitrust claims against IBM.

This agreement was reached by both companies after almost two months of talks.

In the U.S government's antitrust case against the giant company, IBM claimed damages for discriminatory pricing, as Microsoft's software monopoly affected its OS/2 operating system, but also the IBM Smart Suite applications. Microsoft's business practices had a negative impact on IBM, said Judge Penfield Jackson.

In the last days, Microsoft shares rose 0.3%, to $24.91 on Friday, while IBM shares rose 0.6%, to $74.67.