NEW YORK (Reuters) - Barnes & Noble Inc <BKS.N> has settled a lawsuit brought against it by Spring Design, which had accused the top U.S. bookseller of illegally copying a screen design for its popular Nook electronic book reader.
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.
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In its complaint, filed in November 2009, Spring Design said it had shared the dual-display design of its Alex eReader with Barnes & Noble when the companies held talks that year about a possible partnership.
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 Nook e-reader 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)