Microsoft and portable-navigation company TomTom have settled the dueling patent-infringement lawsuits that stirred up a big controversy over Linux in recent weeks, according to a news release issued this morning.

Specific financial terms of the settlement weren't disclosed, but the news release says TomTom "will remove from its products the functionality related to two file management system patents." Those patents were previously reported to relate to TomTom's implementation of the Linux kernel.

"TomTom will remove this functionality within two years, and the agreement provides for coverage directly to TomTom’s end customers under these patents during that time," the news release says.

Microsoft had accused TomTom of infringing eight of its patents. The suit drew widespread attention because three of the alleged violations involved TomTom's implementation of the Linux kernel, although Microsoft said at the time that it didn't intend for Linux to be the focal point of the case. TomTom later filed its own suit alleging that Microsoft's Streets & Trips software violated its patents.

Peter Spours, Director of IP Strategy and Transactions at TomTom N.V., is quoted in the news release: “This agreement puts an end to the litigation between our two companies. It is drafted in a way that ensures TomTom’s full compliance with its obligations under the GPLv2, and thus reaffirms our commitment to the open source community.”

Still, the open-source community will no doubt be sorting out the potential implications as it assesses the public outline of the settlement. The provision for TomTom's customers is similar to a patent protection extended in Microsoft's controversial agreement with Linux vendor Novell.

Microsoft has long claimed that Linux and other open-source programs violate its patents, but the TomTom case was the first time the Redmond company went to court over the issue. Microsoft said previously that it did so only as a last resort, after it was unable to reach a licensing agreement with TomTom over the eight patents.

According to the news release, the five-year agreement calls for TomTom to pay an undisclosed sum for coverage under the eight patents that Microsoft cited in its suits. However, Microsoft isn't required to pay TomTom for coverage under the four patents cited in the navigation company's countersuit.

TomTom spokesman Kevin Carter confirmed the settlement via phone but declined to comment further.

Microsoft's lawsuits were filed Feb. 25 in U.S. District Court in Seattle and the International Trade Commission. TomTom's countersuit  was filed March 16 in the U.S. District Court for the Eastern District of Virginia.

Update, 2 p.m.: CNet News.com's Ina Fried has a good roundup of reactions to the settlement, concluding that the deal leaves unanswered key questions about Microsoft's claims of patent infringement by Linux.

Groklaw adds, "As long as TomTom stays under GPLv2, this might squeak by. But it's hardly ideal. I'd have preferred that TomTom not settle so that the FAT patents could get tested in court, but it's not my dime."

[Post updated at 9:45 a.m. with more details and background.]