IBM, Microsoft are deadlocked over royalties

Article Abstract:

IBM and Microsoft Corp disagree about royalty payments concerning Microsoft's Windows graphical user interface. IBM plans to use code from Windows in its OS/2 operating system, but IBM does not want to pay the $35 royalty usually paid to Microsoft for a copy of Windows. Microsoft says IBM should pay. Both companies say their cross-licensing contracts support their side of the dispute. Both companies hope the matter can be settled without arbitration or legal action, but the problem underscores a growing rivalry between them. The royalty dispute is important because both Windows 3.0 and OS/2 will sell for about $150. If IBM has to pay a large royalty to Microsoft, IBM might have difficulty in maintaining a competitive price for OS/2. In consequence, IBM would have a harder time luring Microsoft customers away from Windows.

Electronic computers, Computer industry, Microsoft Corp., Copyright, Copyrights, Intellectual property, MSFT, Patents, Royalties (Intellectual property), Competition, Patent/Copyright Issue, Legal Issues, Microsoft Windows 3.0 (GUI), OS/2 (Operating system)

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IBM, Novell to announce marketing pact

Article Abstract:

IBM and Novell Inc are expected to announce a marketing agreement whereby IBM's sales force will resell Novell's Netware network operating system. The agreement is expected to put a further strain on the relationship between IBM and Microsoft Corp. Many analysts view the network operating system market as the next big battleground for software companies. IBM already markets a competing operating system called LAN Server which derives from Microsoft's LAN Manager. Novell is the major industry player in the network operating system market controlling 53 percent of wide-wide sales last year. IBM and Microsoft could only account for 10 percent of the market between them. The question to be answered is how hard the IBM sales staff will promote the Netware product, since IBM will also market LAN Server.

Operating systems (Software), Operating systems, Novell Inc., NOVL, Computer Software Industry, Network Operating System, Network operating systems, Marketing Agreements, NetWare (Network operating system)

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