This excerpt taken from the HPQ 8-K filed May 2, 2005.
EMC AND HP AGREE TO SETTLE ALL
HOPKINTON, Mass., and PALO ALTO, Calif. Monday, May 2, 2005 EMC Corporation (NYSE: EMC) and HP (NYSE: HPQ)(NASDAQ: HPQ) today announced that they have agreed to amicably dismiss all claims and counterclaims with no findings or admissions of liability in a settlement of a longstanding patent dispute involving patent infringement allegations between the two companies. HP and EMC have been in patent litigation against each other since 2001.
As part of this settlement agreement, HP 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 HP also have signed a five-year patent cross-license agreement.
Paul T. Dacier, EMCs 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, Vice President of Intellectual Property Licensing, HP. By expanding our relationship with EMCs 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.