Microsoft to Pay Gateway $150 Million

Microsoft and Gateway have finally agreed to settle all outstanding claims that arose in the mid-1990s during the U.S. Department of Justice's antitrust suit against Redmond. Microsoft continues to deny liability, but will pay Gateway $150 million to put the claims behind it.

During the United States v. Microsoft case, District Judge Thomas Penfield Jackson specifically identified Gateway as being harmed from Microsoft's business tactics. Although the statute of limitations regarding the claims expired in late 2003, the two companies signed an extension while a compromise could be worked out.

Microsoft will pay the $150 million to Gateway in chunks over a period of four years. Gateway will use the funds for marketing initiatives and in the development of new products that will run Microsoft's current and future operating systems.

"Gateway continues to enjoy a strong relationship with Microsoft and we're pleased to put these legacy legal issues behind us," said Wayne Inouye, Gateway president and CEO. "We look forward to even greater collaboration with Microsoft going forward as we work together towards the future of computing."

Microsoft echoed a similar sentiment in a statement. "We are very pleased to be able to resolve our past differences in a constructive manner that will allow us to continue our focus on the interests of our mutual customers," said Rodrigo Costa, OEM corporate vice president at Microsoft.