Microsoft to pay a patent fee in IBM accord

Article Abstract:

Microsoft Corp and IBM resolve long-standing disputes over the rights to software code. A surprise move by IBM demanding that Microsoft pay royalties for basic patented software code that governs fundamental functions such as cursor movement seems to have prompted the settlement. IBM has never before asked software publishers to pay for use of the code, although they hold over 1,000 patents on it. Microsoft agrees to a one-time flat fee of $20 to $30 million for the code, while IBM agrees to pay Microsoft royalties on the Microsoft Windows code included in IBM's new operating system, OS/2. Microsoft will continue to share Windows code until Sep 1993, but will not disclose code for its Windows NT operating system. The settlement may set a precedent for agreements between IBM and other software publishers, but in many cases the situation will be complicated by IBM's need for these companies to develop software for OS/2.

Electronic computers, Computer peripheral equipment, not elsewhere classified, Software, International Business Machines Corp., IBM, Licensing agreements, Licensing, Legal Issues, Software Design, Patent, Microsoft Windows 3.0 (GUI), OS/2 (Operating system)

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Microsoft vows aggressive gains in market share

Article Abstract:

Microsoft Corp aims for dominance in all major categories of microcomputer software. According to Microsoft Senior VP Michael Maples, Microsoft could gain as much as 70 percent of the market in such applications as word processors, spreadsheets, data base managers and graphics packages. Microsoft believes that the success of its Windows graphical user interface (GUI) will help the company to achieve its goals. Maples' remarks are unexpected because Microsoft has a reputation for being too powerful in the software industry and is even being investigated by the government, which is concerned about possible anticompetitive behavior. Industry observers expected the company to be more cautious about its plans and successes. Microsoft's stock closed down $1.75 a share on Nov 14, 1991, at $99.25 a share.

Computer integrated systems design, Marketing, Market share, Strategic Planning, Competition, Marketing Strategy, Computer Software Industry, Stock

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