Imation, Quantum, and Maxell Settle DLT Dispute

Imation, Quantum, and Maxell announced that they have settled all legal claims between the companies involving DLTtape media products. (The DLT technology competes with Linear Tape-Open--LTO--and AIT.) Last October, Imation filed a federal antitrust lawsuit against Quantum, accusing the company of thwarting Imation's efforts to produce DLT-compatible cartridges. In December, Imation amended the complaint to add Maxell. Quantum filed a counterclaim in California state court, stating that Imation violated Quantum's trade secrets and seeking an injunction to prevent Imation from selling DLT products. Maxell also filed a counterclaim, alleging that Imation engaged in false advertising. As part of the settlement, all suits will be dismissed.

Under terms of the settlement, Quantum will pay Imation $5 million over 18 months and enter into a multiyear business and supply agreement. Further details of the settlement weren't released. Maxwell will also pay Imation an undisclosed sum. Imation will now be able to sell certified DLT and SuperDLT products.

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