Imation and Philips have been battling each other in court over allegations of patent infringement. The two firms have been fighting a series of legal battles in multiple jurisdictions over cross-licensing and patent infringement related to optical media.

The two companies announced today that a settlement has been reached. Most of the settlement is confidential and the only information about the settlement is that neither party has had to admit wrongdoing.

Under the settlement, Imation will pay Philips $53 million over a period of three years. Imation expects to record a charge based on the value of the payment of about $0.81 per share in Q2 2009. The pre-tax cash impact of the settlement will be $16.5 million for 2009.

Via Imation