The lawsuit, filed by Compaq in February in the District Court of Harris County in Texas, alleged that RLX violated Compaq's trade secrets by, among other acts, recruiting key Compaq executives and getting them to improperly divulge Compaq design secrets.
The suit was settled Monday. Terms were not disclosed. However, representatives from Houston-based Compaq and Woodlands, Texas-based RLX said that the companies have not changed their product plans.
Both companies are preparing to release power-efficient, "ultradense" servers later this year. These new types of servers will let corporate customers fit 200 to 300 processors into a single server rack. Current server designs accommodate only 84 processors in a single rack. The new designs will permit e-commerce sites and Web hosting companies to stuff more computing power into a finite amount of space.
Compaq's QuickBlade servers will incorporate processors from Intel, while RLX's servers will depend on chips from Transmeta.
A number of former Compaq executives hold key management positions at RLX. Gary Stimac, RLX's chief executive, was one of the original Compaq executives. Mike Perez, RLX's vice president of technology, used to run Compaq's server division.