Quantum will pay competitor Imation $5 million as part of a settlement that ends a legal battle over the production of Digital Linear Tape (DLT) products, the companies announced yesterday.

Imation said it has dismissed an antitrust lawsuit it filed in October against Quantum, in which it accused the company of fixing prices for DLT cartridges and conspiring to monopolize the cartridge market. It also dismissed a related antitrust suit against Maxell.

For its part, Quantum agreed to dismiss its trade secrets lawsuit against Imation, filed two days after being charged with the antitrust violations.

DLT tapes are used primarily for backup storage, archiving, and disaster-recovery, and are produced by a number of vendors. Quantum holds patents on the DLT tape standard.

Increased loss The company said it agreed to pay $5 million to Imation over an 18-month period. In its original suit, Imation had sought damages from Quantum of $150 million, which would have been tripled under antitrust law to a minimum of $450 million.

The cost of the settlement will be factored into Quantum’s results for the fiscal year, which closed March 31. It will increase Quantum’s net loss, based on generally accepted accounting practices, to $82 million.

The companies also agreed that Imation could become a qualified manufacturer of DLT-tape media. They also entered into a multi-year business and supply agreement.