Sun Microsystems has entered into a formal agreement with the Eastman Kodak Company to settle all claims in pending litigation regarding a software architecture based on the Java computer language.

Sun will pay Kodak $92m and will receive in exchange a licence under all Kodak patents for the benefit of the Java technology and under the patents in the lawsuit for any and all purposes. Under the settlement Sun does not admit or deny the allegations.

Willy Shih, Kodak senior vice president, said in a statement: "We achieved our goals in this case, which was to protect our intellectual property rights.

"We are pleased that the court has validated these fundamental Kodak patents and we now look forward to building a more productive relationship and continued collaboration with Sun, with which we have enjoyed a close partnership for nearly two decades."

Sun said that the settlement assures customers worldwide that the vendor will stand behind its products and intellectual property, and eliminates any uncertainty that could result from a protracted lawsuit and appeal.

Jonathan Schwartz, president and chief operating officer at Sun, said in a statement: "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."