The two companies had sued each other in October over a new format Quantum developed called Digital Linear Tape (DLT) and a successor called SuperDLT. Imation's suit expanded in December to include Maxell. Quantum sells tape drives and tape cartridges and licenses the tape format to companies such as Imation and Maxell that make tape cartridges.
Under the settlement, Quantum is paying Imation $5 million over 18 months and entering into a "multiyear business and supply agreement" about which the companies wouldn't release details.
In addition, Maxell is paying Imation an undisclosed sum, said Imation spokesman Brad Allen. More significant than those terms, however, is the fact that Imation will now be able to profitably sell certified DLT and SuperDLT products, Allen said.
In October, ImationQuantum of violating antitrust laws by thwarting Imation's efforts to produce DLT-compatible tape cartridges.
Quantum then, saying Imation misappropriated Quantum trade secrets, and asked for an to stop Imation from selling uncertified DLT cartridges. While the injunction forced Imation to pay royalties, it didn't prevent the company from selling the tapes.
In December, Imation expanded its antitrust suit to include the SuperDLT format in its complaint and named tape maker Maxell as a second defendant.
Quantum Chief Executive Michael Brown said the settlement boosts his company's DLT business and "avoids the expense of prolonged litigation."
Tape backup cartridges are an unglamorous but important part of corporate computing. The cartridges, capable of storing tens of gigabytes of information cheaply, are used to protect data in case of problems such as fires or server crashes.
Quantum and Imation's squabbling over DLT took place as other companies were pushing competing formats such as Linear Tape Open and Advanced Intelligent Tape (AIT) forward.