Visto, Microsoft Settle Patent Dispute

A week before the case was to be heard before a court in Texas, Microsoft and Visto have settled a two-year-old patent lawsuit over technologies used in Microsoft's Windows Mobile OS that allow wireless devices to access e-mail.

According to an e-mail from a Visto spokeswoman, Microsoft and Visto have entered into a settlement and license agreement involving "cash and non-cash consideration." The agreement means all claims in the case are being dismissed, she said.

The spokeswoman said the company is not disclosing specifics of the settlement. However, she noted that it was Visto that brought the case against Microsoft and was seeking payment for patent licenses.

Visto sued Microsoft in December 2005 in the U.S. District Court for the Eastern District of Texas for violating three patents for technology that automatically pushes e-mail from the Internet to wireless devices. Visto's software is used by carriers including AT&T Wireless, Sprint Nextel and Vodafone.

At the time, the company sought unspecified monetary damages and a permanent injunction preventing Microsoft from shipping Windows Mobile 5.0, which the company called "a blatant infringement" on its technology. The case was scheduled to go to trial on March 10.

In a press statement Monday, Daniel Mendez, co-founder, executive vice president and CTO of Vista, said the company is "pleased that Microsoft agreed to this arrangement which we believe reinforces our ownership of these crucial inventions and technology."

"This settlement is yet another validation of Visto's strong and important patent portfolio," he said.

Microsoft confirmed that a settlement was made in the deal but that the terms are being kept confidential.