The Defense Ministry and Microsoft have signed a pact on bilateral technology cooperation, putting an end to their dispute over the pricing of the firm’s software products used by the ministry, Seoul officials said Thursday.

“Microsoft has agreed not to demand the fees for us using its software any more. Resolving the dispute, the two sides have agreed to cooperate on defense information and technology,” a ministry official told reporters, declining to be named.

“We anticipate Microsoft’s technological know-how and experience in cyber security would help develop the cyber defense sector in South Korea.”

Making a claim to the ministry over its intellectual property through a series of official documents last year, Microsoft demanded 210 billion won ($188 million) for the cost of the software programs used by the ministry and Korea’s armed services.

The ministry’s position was the figure was miscalculated as only some of the ministry’s or other military units’ computers or other devices were connected to the so-called MS Client Access License servers.

The ministry also uses other data-processing server systems such as Unix, Linux and Oracle. When enterprises or agencies purchase servers, they need to buy a software license as well.

By Song Sang-ho (sshluck@heraldcorp.com)