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Microsoft settles in IM spam suit

Microsoft said on Thursday it has reached a settlement with Funmobile, the Hong Kong-based company it sued last July over accusations that Funmobile was using instant messaging spam to trick users into giving up their account information.

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

"The successful resolution of this case sends a clear signal that Microsoft does not tolerate abuse of its networks, and we will continue to take action to protect our customers," said Microsoft associate general counsel Tim Cranton in a statement.

Microsoft had accused Funmobile of targeting users on its Live Messenger network to gain their personal information. Live Messenger has more than 320 million users, according to the company.

In the suit, Microsoft cited a number of attacks, including IMs that appear to be coming from users the victims know. It also described phishing attacks that mimic the look and feel of an outside service or an official Microsoft support page.

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