Cornice has settled one part of a patent infringement dispute with Seagate Technology over 1-inch hard-disk drives by agreeing to stop manufacturing the drives in question.
The agreement will see Cornice stop producing 1GB, 1.5GB and 2GB versions of its 1-inch hard-disk drive by the end of May, the two companies said in a statement.
The move sees an end to Seagate's legal action against Cornice at the US International Trade Commission (ITC), which had been due to begin hearing the case this week.
The settlement doesn't affect two other lawsuits - a suit and countersuit - filed at the US District Court for the District of Delaware.
Trouble started in June 2004 when Seagate filed a lawsuit alleging Cornice's drives violated six of its patents. The lawsuit seeks to prevent Cornice from selling the drives in the US and asks for monetary damages. Seagate followed this lawsuit with the now-settled ITC complaint in July. Cornice fired back in August with a countersuit against Seagate in the Delaware court.
A trial in Delaware remains scheduled for June 2006, the two companies said.
The resolution of the ITC lawsuit might be seen as something of a hollow victory for Seagate, which had asked the ITC to ban US imports of drives and devices using those drives.