Iomega and Nomai SA this week announced they have settled a long-running legal battle fought in courts around the world, during which Iomega sought to prevent Nomai from selling data storage media for use with Iomega's drives.
As part of the settlement, Nomai had to acknowledge the validity and enforceability of Iomega's patents, trademarks and copyrights, and that it had reproduced Iomega-protected software in the process of manufacturing its XHD and DUO cartridges. Nomai also agreed not to license, manufacture or market those cartridges anywhere in the world without authorisation from Iomega.
The bitter pill of the settlement with giant Iomega may have been easier for the small French company to swallow because it was accompanied by Iomega's decision to acquire a majority interest in Nomai for approximately $US21 million.
For an additional $US3 million, Iomega will also acquire certain technology owned by Nomai that is used in the manufacture of the XHD and DUO cartridges.
"As the settlement discussions progressed we learned that Nomai had a strong research and development team, and certain technology under development including a low-cost 2GB removable cartridge drive, a CD-RW drive and DVD technology, that could provide synergies to both companies," said James Sierk, Iomega's president and CEO.