Borland and Microsoft settle lawsuit

Borland International Inc. and Microsoft Corp. have settled a closely watched lawsuit in which Borland accused the powerful software maker of stealing away employees.

The companies announced Friday afternoon they settled the suit brought by Borland on May 7.

"We believe this settlement is in the best interest of both our companies. This settlement resolves any legal questions surrounding the lawsuit and allows both companies to move forward," the companies said in a joint statement.

Executives of both companies said they have agreed not to discuss details of the settlement.

The Borland suit accused Microsoft of "systematically raiding" its personnel in an "insidious" attempt to weaken the smaller company's efforts to right itself. Microsoft used lavish signing bonuses, sabbaticals and vacations to woo Borland employees. Borland said it lost 34 key software architects, marketing managers and engineers to Microsoft over 30 months.

"I just want Microsoft to leave us alone," Yocam said at the time. "It's like you're in the desert and Microsoft is stealing your water bottle."

The company was particularly miffed following the departure of Paul Gross, a senior vice president of research and development, who had championed Borland's move toward the Internet. He became Microsoft's vice president of its Internet platform and tools division.

Both companies compete in the software tools market.