History 1999: StorageTek Forced to Pay Odetics $100 Million

The ancient lawsuit between Odetics and StorageTek has finally been resolved with a settlement between the two parties: StorageTek has paid Odetics $80 million, and will add another $20 million in $10 million installments over the next 2 years.

It was on June 29, 1995 that Odetics, then a library maker, first filed suit, via its subsidiary ATL Products (now a Quantum subsidiary), for patent infringement vs. its rival, with respect to the transfer of tape cartridges between libraries.

The first judgment of the Eastern District Court of Virginia condemned STK to pay damages of $70.6 million. STK appealed the decision, but chose not to see the trial to its end, preferring instead to settle for the round sum of $100 million

This article is an abstract of news published on issue 143 on December 1999 from the former paper version of Computer Data Storage Newsletter.