In the light of the fact that the litigation has been overtaken by the grant of approval for the service by Tessa Jowell, secretary of state for culture, media and sport, the BBC and the software companies have agreed that the firms will withdraw the judicial review proceedings on the basis that each side will pay its own costs.
The case, launched in May 2002, was sparked by BBC plans to spend £150m of licence-fee money over five years on its online education activities.
The government finally approved the BBC's plans in September, but imposed strict conditions in return for giving the green light to the proposals.
By giving the BBC the go ahead, the government is allowing the corporation to develop an online resource providing interactive learning materials on the internet that will support the school curriculum.
The decision angered commercial publishers of educational materials, who have been lobbying the government to stop the BBC's plans.
Jowell imposed as many as 18 conditions on the the BBC after listening to the commercial sector's concerns.
"There is room for everyone. These conditions will prevent the BBC from dominating this market, but it's right that it should play an important role in a competitive and growing market for digital learning resources," Jowell said.
Among the conditions imposed by Jowell is the obligation to spend half of the programme's budget for content on commission services from the private sector. Other conditions focused on standards and will be reviewed after two years.
At the time, BBC director general Greg Dyke welcomed the decision. "[These conditions] will enable the BBC to build partnerships across the industry to launch a service that will make school curriculum content compelling and exciting for children across the nation."
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