Magma to pay Synopsys $12.5 million to settle suit

LONDON — EDA software providers Synsopsys Inc. (Mountain View, Calif.) and Magma Design Automation Inc. (San Jose, Calif.) have said they have agreed to settle all pending litigation between them. As part of the deal Magma has agreed to make a payment to Synopsys of $12.5 million.

The companies have also agreed to cross-license patents that had been at issue between them and drop claims in both California and Delaware. In addition, the two companies said that have agreed not to initiate future patent litigation against each other for 2 years provided certain terms are met. The terms were not disclosed.

Synopsys and Magma (Santa Clara, Calif.) have traded suits and charges since September 2004, when Synopsys originally sued Magma for patent infringement, claiming that Magma's former chief scientist used timing closure methodology originally developed while employed by Synopsys in Magma's Blast Fusion IC physical design suite.

"For us, this case has always been about the return of Synopsys technology and the protection of our IP, and we have achieved this," said Aart de Geus, chairman and CEO of Synopsys.

"This unfortunate episode involved significant expense to both sides," said Rajeev Madhavan, chairman and CEO of Magma. "I am pleased we found common ground for a resolution that makes business sense for both of us."