Asustek, IBM reach agreement in patent dispute

The new deal will end all litigation between the two companies

IBM and Asustek said on Tuesday that they have entered into a broad patent cross-licensing agreement that ends all patent litigation between the two companies.

The agreement will be the basis for future collaboration between them, the two companies said in a statement. Financial terms of the deal were not disclosed.

The patent dispute dates back to December 2007 when IBM filed a complaint with the U.S. International Trade Commission alleging that certain computer products and components of the Taiwanese company and its U.S. subsidiary infringed IBM patents.

The three patents covered power supplies, computer cooling and computer clustering technologies, IBM said at the time.

In April 2008, Asustek countered with a patent infringement lawsuit against IBM in the U.S. District Court for the Southern District of California, alleging IBM had infringed two of its patents.

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