Quantum and Imation Corp announced today that they have settled all legal claims between the companies over the qualification, production and sale of DLTtape media products. As a result, Imation has dismissed its antitrust lawsuit against Quantum and Maxell, and Quantum has dismissed its trade secrets lawsuit against Imation. Quantum and Imation also have committed to completing qualification of Imation as a manufacturer of DLTtape media.
Quantum and Imation issued the following joint statement regarding the settlement: "Both companies are pleased that this dispute has been settled. We reaffirm our commitment to serving the needs of customers for high quality, reliable tape products and expanding the DLTtape media market in a competitive environment. We also look forward to Imation's continued participation in this market as a manufacturer of DLTtape media once it completes qualification."
Quantum also announced that in connection with the settlement, it will pay Imation the sum of $5 million over an 18-month period and the parties will enter into a multi-year business and supply agreement. Terms of this business and supply agreement, as well as other specific terms of the settlement, will not be disclosed.
"We are pleased with this settlement, which serves the best interests of Quantum, our shareholders, and our customers," said Michael Brown, chairman and CEO of Quantum. "It reaffirms the strength of our tape media business model and avoids the expense of prolonged litigation. It also reflects Quantum's continued commitment to ensuring that end-users have a choice among competing vendors offering qualified DLTtape media products that meet the highest standards of reliability, compatibility and performance for protection of business-critical data."