Dot Hill, Crossroads Settle Patent Dispute

Carlsbad-based storage systems provider Dot Hill Systems said today that it has reached a settlement with Crossroads Systems over a patent action brought against it by Crossroads. The firm will pay $3.35M for alleged past damages, and Crossroads will dismiss all patent claims against Dot Hill. Dot Hill also said that a third party will pay $7.15M to Crossroads in the patent case. The settlement also calls for a royalty payment of 2.5% on Dot Hill's future sales of RAID products incorporating Crossroads patents. Dot Hill develops Fibre Channel and storage area networking equipment and storage systems. Crossroads filed the patent suit against Dot Hill in October of 2003, alleging infringement of patents in the area of storage routing and virtual storage.