Representatives of both companies said that the parties had reached a settlement and agreed to cross-license each other's intellectual property. Neither company would comment on further financial details of the settlement.
In July, a U.S. District Court judge in Houstonthat Emachines was infringing on nine patents originally issued to Compaq and not to commit further infringement on two of the patents.
HP said at the time that the decision meant that Emachines must remove two infringing features from its computers, switch to components from suppliers that HP has licensed, or stop selling its computers in the United States.
At that time, Emachines said the injunction did not affect any of Emachines' current or future products. A trial on the remaining issues in the case had been set for this month.