Under the terms of the settlement, the companies agreed to cross-licence a limited number of each others' patents and settle all legal claims, the companies said on Tuesday. Quantum will pay Sun US$20 million this quarter and US$5 million over the next five quarters.
StorageTek sued Quantum in August, after Sun announced in June it planned to acquire the company for a net amount of about US$3 billion but before the deal closed in August.
"Quantum agreed to settle after considering the benefits of the cross licence agreement, the additional legal costs we would have incurred in proceeding with the trial, the uncertainty inherent in any jury case and the potential impact on our business if we lost in court," Quantum Chief Executive Rick Belluzzo said in a statement.
"The patent cross licence agreement demonstrates the commitment of Quantum and Sun/StorageTek to building a stronger business partnership centred on meeting customers' storage and data protection needs," he said.
