Aliso Viejo-based Quest Software Inc., a maker of software for managing databases, plans to pay $16 million plus royalties to Computer Associates International Inc. to settle a patent lawsuit.
Islandia, N.Y.-based Computer Associates charged Quest with making software with code from Platinum Technology International Inc., which Computer Associates bought in 1999.
The company alleged Quest and four ex-Platinum workers used the code in the company’s Quest Central product for IBM Corp.’s DB2 database software. The suit also alleged various copyright violations.
According to Computer Associates’ complaint, the four workers who went to Quest had worked on Platinum’s source code. They left after Computer Associates bought Platinum.
The settlement, which includes a Quest licensing agreement with Computer Associates, also covers Quest’s counterclaims challenging Computer Associates’ copyright.
Niether company admitted fault in the settlement.
Now Quest can again market and license its administration software for IBM DB2.
The fight over the code dates back to 2000, while the litigation started in 2002. The battle had become burdensome for Quest.
In last year’s second quarter, the company posted a $5 million charge for the loss of a contingency reserve related to the Computer Associates fight.
