Updated from 10:48 a.m. EST

Hewlett-Packard

(HWP)

and

Xerox

(XRX) - Get Report

announced Monday that they had settled all the pending patent-infringement lawsuits filed against each other.

The outstanding litigation dismissed includes six patent-related lawsuits filed between May 1998 and June 1999. Xerox, the largest copier maker in the world, had filed complaints against H-P for products that use inkjet, color balancing and resolution enhancement technologies. H-P, the largest printer maker in the world, had filed complaints against Xerox for products that use touchscreen user interface, inkjet and image enhancement technologies.

The two companies decided to settle the suits in order to avoid the costs, time and distractions of lengthy legal battles. Now, Xerox and H-P can focus on "competing with each other in the marketplace, rather than in the courts," the companies said in a statement.

Wall Street reacted positively to the settlement. H-P's shares climbed 6 11/16, or 4.8%, to 145 1/2 by Monday afternoon. Xerox's stock was up 3/4, or 2.9%, at 26 9/16.

The six suits cover a span of 13 months. On May 14, 1998, Xerox, based in Stamford, Conn., sued H-P over the multicolor thermal inkjet printhead patent. On May, 27, 1998, H-P, based in Palo Alto, Calif., sued Xerox over its touchscreen user interface patent.

On July 7, 1998, Xerox filed a counterclaim against H-P over color balancing technology. Two months later, on Sept. 25, Xerox sued H-P over a resolution enhancement patent. The next month, H-P filed a suit against Xerox over the ink containment systems patent.

Finally, in June 1999, H-P filed suit against Xerox over image enhancement technology.