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By | Chris Mellor 2nd October 2008 11:09

Riverbed settles de-dupe tech dispute

$11 million flows to Quantum

Riverbed and Quantum have settled their legal dispute over patented de-duplication technology, with the former coughing up $11m to release itself from all claims. Both companies have cancelled their legal assaults on each other.

Riverbed uses de-duplication technology in its Steelhead WAN acceleration products, so as to pump less data through the network pipes, and in its newly announced application of them to de-dupe primary disk storage. Quantum uses de-duping technology in its DXi7500 appliances, licenses that technology to EMC, and also has a licensing agreement with Data Domain for use of said technology.

Quantum acquired the technology when it bought tape automation and StorNext software supplier ADIC in 2006. ADIC had acquired it when it bought a supplier called Rocksoft earlier that same year.

Riverbed was hit by an IP infringement suit from Quantum in September 2007 after eight months of talks, had failed to produce any cash for Quantum. Riverbed counter-sued Quantum in November and the stage was set for legal eagles to feather their nests. They have had only had one year to do this as the parties have settled.

The details are confidential, but Quantum has filed a report with the SEC revealing the lump sum Riverbed payment of $11m.

The filing makes no mention of any ongoing licence payments by Riverbed, so it looks as if this is a kiss-off-and-go-away fee. Quantum should have some change left over after covering its legal costs, whereas Riverbed sales reps will have to work a bit harder to make up the lost $11m plus its own lawyer fees. ®

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