On November 23, the Shenzhen-based Netac Technology Co. Ltd., a leading global producer of USB flashes, issued a statement announcing the infringement lawsuit it brought against Sony (Wuxi)  in July 2004 had finally been settled. Both parties agreed to resolve the legal dispute and engage in business cooperation.

The case, which had aroused wide concern, originated when Netac sued Sony (Wuxi) in July 2004 for allegedly infringing its patent on flash drive. It asked Sony (Wuxi) to stop infringement and also pay 10 million RMB in compensation. The case seemed to be making little progress after that until Netac suddenly made the statement days ago.

The statement said the two parties had settled their dispute amicably and would now focus on cooperation. Under the terms and conditions of the agreement, Netac will withdraw the civil lawsuit and Sony will purchase USB flashes  from it after the settlement becomes effective.