The case, filed in 1992, alleged that Eugene Wang, a former Borland executive in the development tools group, had divulged trade secrets when he went to competitor Symantec.
Borland subsequently filed a lawsuit against Wang, who was hired as a vice president, and Symantec's chief executive, Gordon Eubanks.
Criminal charges were later filed against the two men by the Santa Cruz County District Attorney in 1993. Those charges, however, were dismissed in November.
Borland and Symantec said they have both agreed to drop the lawsuit and related counterclaims.
Philippe Kahn, the former Borland CEO who filed the suit, has since left the company and Wang resigned from Symantec in 1995.