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Microsoft, TomTom Settle GPS Dispute

3/31/2009 10:59:00 AM Eastern

Redmond, Wash. — Microsoft and TomTom settled a patent infringement dispute regarding car-navigation software that has TomTom paying Microsoft an undisclosed sum.

To resolve a Microsoft suit filed against TomTom in February and a countersuit by TomTom, the companies agreed that TomTom will pay for eight Microsoft car-navigation and file-management-systems patents. Also, Microsoft will receive access to four TomTom patents. The agreement has a five-year term and does not require any payment by Microsoft to TomTom.

Also under the agreement, TomTom will remove from its products functions related to two Microsoft file management system patents (the “FAT LFN patents”), which enables efficient naming, organizing, storing and accessing of file data, said Microsoft. TomTom will remove this functionality within two years.