UPDATE 1-Microsoft settles TomTom patent dispute

* Parties settle dispute after more than a year

* TomTom to make payments to Microsoft

* Financial details of settlement not disclosed

SEATTLE, March 30 (Reuters) - Microsoft Corp (MSFT.O) said on Monday it settled a patent dispute with Dutch navigation device maker TomTom NV (TOM2.AS), ending more than a year of squabbling over software patents.

In the last few weeks, both companies had sued the other, claiming patent infringement.

Under the terms of a five-year agreement, Microsoft said TomTom will pay Microsoft for use of the eight car navigation and file management system patents in the case Microsoft brought against TomTom, while Microsoft will be able to use the four patents included in the TomTom countersuit without any payment to TomTom.

Specific financial terms of the agreement were not disclosed. (Reporting by Bill Rigby)