Iomega and Nomai make up and link up

Iomega's protracted legal battle with French disk drive and cartridge manufacturer, Nomai, has come to an end. In a surprising move, Nomai has not only admitted to wrong-doing, but agreed to let Utah-based Iomega take a majority stake in the company.

Lori Keating, Iomega senior vice president and general counsel, said although the dispute has been going on since March 1997, discussions about a possible settlement began only a month ago.

Following several developments - including a trial at the Royal Courts of Justice in London, which still awaits a ruling - Nomai said it realised it stood little chance of winning the legal battle. At the same time, Iomega became attracted to Nomai's upcoming technology and R&D work.

Iomega's Keating denied the company was buying into a fundamentally unsound company which reverse engineered a competitor's technology.
She told Silicon: "Of course we frown upon some of the activities Nomai engaged in, but their next generation magnetic disk drives look promising, and the lab in Scotland which they acquired in 1995 contains some very talented staff."

Nomai was not available for comment.

Apart from the deal with Nomai, Iomega has had a torrid last six months. Several top executives have left the company, results have been poor, and shareholder lawsuits have been filed because of the company's tumbling stock price.