GM Settles Ex-Microsoft CTO’s Patent Suit Over OnStar System

General Motors Co. agreed in principle to settle a patent infringement lawsuit over theOnStar wireless communications system used in its Cadillac, Chevrolet, GMC and Buick brands.

Western District of Texas Judge Alan Albright on Friday stayed all deadlines and gave the parties until May 17 to finalize their deal. The largest US automaker and plaintiffs Intellectual Ventures I LLC and Intellectual Ventures II LLC—a pair of patent management companies founded in 2000 by Nathan Myhrvold, Microsoft’s former chief technology officer—informed him of the pact Thursday.

The deal will let GM avoid a July 25 scheduled trial date in Waco, ...