Macromedia, Adobe settle patent squabble

Adobe Systems Inc and Macromedia Inc have settled all their outstanding patent infringement lawsuits, the firms announced yesterday, hopefully bringing to an end two years of litigation and badmouthing.

"The terms of the settlement are confidential," the companies said in a joint statement released after the market closed yesterday. "Customers with products from either Adobe or Macromedia will not be affected."

Adobe sued Macromedia in August 2000, claiming the company's new customizable palette GUI infringed its patents. Macromedia countered in September 2000, saying Adobe software infringed its element blending and sound patents.

This May, both verdicts came in. Adobe was awarded $2.8m for Macromedia's infringement and said it would seek an injunction. Two weeks later Macromedia was awarded $4.9m and said it would seek an injunction.

Though both companies said they would appeal the rulings, clearly neither wanted to have its products to be removed from the market, setting up the likelihood of a speedy settlement before injunctions and recalls became a reality.

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