The Redmond, Wash.-based software giant sued Belkin in August, saying the company had refused to license Microsoft's U2 technology, which allows keyboard and mice to detect what type of connection is needed.
"We are pleased to announce that we have settled our dispute with Belkin and that they will be taking a license to use the U2 patents," Deputy General Counsel Tom Burt said in a statement provided to CNET News.com. Microsoft did not provide terms of the settlement.
Belkin declined to comment on the terms of the deal, but said in a statement, "We are glad to have reached a settlement with Microsoft, and we are satisfied with the outcome."
Microsoft, but said it had been trying to line up Belkin as a licensee for more than two years. Microsoft said that Targus and Fellowes, among others, have licensed the U2 technology, which allows a keyboard or mouse to determine whether to use a USB or PS/2 connection to a computer.