INDUSTRY

Without admitting or denying allegations, Sun Microsystems has entered into a formal settlement agreement with the Eastman Kodak Company to settle all claims in pending litigation between the parties. The matter was being heard in the U.S. District Court for the Western District of New York. The settlement involves a cost to Sun of $92 million. In exchange, Sun receives a license under all Kodak patents for the benefit of the Java(TM) technology and under the patents in the lawsuit for any and all purposes. The settlement assures customers worldwide that Sun will stand behind its products and intellectual property, and eliminates any uncertainty that could result from a protracted law suit and appeal. "Sun's Java Communities represent the future of the Internet. The Communities' vitality, along with the safety of every other open community in which Sun participates, from OpenOffice.org to the upcoming open Solaris OS community, are of paramount concern to us," said Jonathan Schwartz, president and chief operating officer, Sun Microsystems Inc. "We are eager to put this punitive litigation behind us, to have reached a decision in the best interest of our stockholders, customers and employees, and to focus our future activities on the evolution of the Internet and Sun's place within it."