Terms of the settlement, which covers all outstanding suits between the companies, were not disclosed, but the companies said in that their customers would not be affected.
In mid-May, a jury awarded Macromedia $4.9 million in damages after finding that Adobe's Illustrator graphics program and Premiere video-editing program infringed Macromedia patents. That ruling came a week after a Delaware jury awarded Adobe $2.8 million in a separate suit against Macromedia.
Macromedia had at least one suit still outstanding against Adobe before the settlement was announced. That suit was set to go to trial in 2003.
Adobe in San Jose, California, and Macromedia, in San Francisco, are rivals in a number of graphic- and Web-design markets, including illustration, Web-site creation tools and Web graphics.