EMC Corp. and Hewlett Packard Co. (HP) have finally settled four years of patent disputes with a cross-licensing...
agreement. Officials also hinted at closer business ties.As part of the settlement, HP agreed to pay $325 million to EMC. But instead of cash, HP can satisfy that requirement through the purchase for resale or internal use of EMC products, such as the VMware product line, over the next five years, said EMC in a statement.
The Hopkinton storage giant won that round, but it sparked off three more lawsuits that EMC and HP filed against each other. The most damaging for HP was the patent infringement lawsuit it inherited when it acquired StorageApps for $350 million in 2001. EMC won that suit and got a permanent injunction against HP, preventing it from selling any technology from StorageApps.
That included HP's OpenView Continuous Access Storage Appliance product -- based on StorageApps technology -- a key enabler of data replication between devices from different vendors on a SAN.
Since then, HP has had a streak of bad results and faces an uphill battle in the storage industry. "A partnership with EMC just might be the catalyst it needs to pull it out of the doldrums," said Galen Schreck, analyst with Forrester Research Inc.Related articles:
HP storage: What went wrong?
HP users burned by EMC court victory
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