IBM today announced it has settled all outstanding litigation with Compuware. As a result of the settlement, IBM and Compuware have signed a software and services agreement.
IBM has agreed to license $140 million of Compuware software over the next four years, and offer to purchase $260 million of select Compuware services over the next four years. IBM and Compuware have also entered into a patent cross-license agreement, covering patents related to the current businesses of both companies.

This agreement will not have a material impact on IBM’s first-quarter 2005 earnings.