Microsoft said it has reached a settlement with Funmobile, the Hong Kong-based company it take legal action last July over charges that Funmobile was using instant messaging spam to trick users into giving up their account info.

The software maker said it has obtained an ban against Funmobile requiring it torefrain from 'spimming'--sending IM-based spam--to customers or contacts of Windows Live Messenger, and to get a cash payment to Microsoft.

"The successful resolution of this case sends a clear signal that Microsoft does not accept misuse of its networks, and we will continue to take action to guard our users," said Microsoft associate general counsel Tim Cranton in a statement.
Read more of "Microsoft settles in IM spam suit" on ZDNet UK.