Under terms of the agreement, Spring is granting Barnes & Noble a non-exclusive license for all of its patents and patent applications. Other terms of the settlement were not disclosed.
The company said Barnes & Noble later incorporated features of Alex into Nook, breaching a nondisclosure agreement. One Nook screen is used for reading and one for browsing.
Barnes & Noble, which has faced shrinking booksales at its namesake bookstores for years, launched the first version of the in 2009 to compete with Amazon.com Inc’s (AMZN.O) market leader in the growing e-books market. Last week, Barnes & Noble claimed to have a 25 percent share of that market.
The case, which will be dismissed, is Spring Design Inc v. Barnesandnoble.com LLC, U.S. District Court, Northern District of California, No. 09-05185.
(Reporting by Phil Wahba, editing by Dave Zimmerman)