EMC, Hewlett-Packard Settle Patent Dispute

H-P will pay a net balancing repayment of $325 million.
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EMC (EMC) and Hewlett-Packard (HPQ) - Get Report have agreed to settle all outstanding claims in their patent litigation that has been ongoing since 2001.

In a joint statement released after the market closed Monday, H-P will pay a net $325 million balancing payment to EMC, which can be satisfied through the purchase for resale or internal use of complementary EMC products, such as the VMware product line, over the next five years. EMC and H-P also have signed a five-year patent cross-license agreement.

The claims will be dismissed without any findings or admission of liability.

Paul T. Dacier, EMC's senior vice president and general counsel, said, "We are pleased with these agreements. This resolution allows EMC to protect our substantial intellectual property investments and patent portfolio while serving the best interests of our customers. Upon completion, we expect to have a business relationship that will provide the customers of both companies with additional choices and technology that can accelerate their adoption of information lifecycle management."

"HP is happy to conclude this matter in a way that recognizes the strength of both companies' intellectual property portfolios and provides positive benefits to customers desiring interoperable multi-vendor solutions," said Joe Beyers, H-P's vice president of intellectual property licensing. "By expanding our relationship with EMC's various software divisions, HP will be able to deliver a more formalized approach to selling these solutions, and explore new ways to integrate and leverage our complementary offerings."