Apple has been in fight with almost every mobile maker in the market (HTC, Motorola and Samsung) over copyright infringement, inciting suits in several countries.  But the iPhone maker made a rare settlement with the Taiwanese company Elan Microelectronics Corp. for a long standing patents dispute this week. Elan Microelectronics and Apple have settled a legal dispute over multitouch patents out of court. Accordingly, Apple pays $5 million dollars to Elan. In addition, both the companies have a made cross-licensing of patents held by Elan U.S. 5,825,352 and 7,274,353 as well as Apple’s patents 5,764,218 and 7,495,659.

The settlement amount would form part of an agreement that both companies have reached after being involved in a lengthy legal battle over intellectual property. According to Reuters, the two organizations have decided to allow an exchange of licenses to use patents of the other firm.

The tempestuous relationship of Apple and Elan began in 2009. The Taiwan-based company first sued the Apple for violating two of its patents, claiming that Apple infringed on patents for multitouch capabilities with its iPhone, iPod touch, the Magic Mouse and MacBook trackpads products.

Elan won a similar lawsuit against the trackpads manufacturer Synaptics in 2008. Synaptics’ trackpads are being used by Apple, Dell, HP, LG, Logitech, Nokia, Samsung, Sony, Sony Ericsson, Toshiba and other more. In April and June 2010, the International Trade Commission ruled in favor of Apple, saying the Cupertino Company did not infringe on Elan’s intellectual property.

It is not clear that why Apple has reached a settlement with Elan, considering the ruthlessness with which it’s pursued other legal patent matters.  But Apple probably has evaluated a less expensive solution rather than paying for an ongoing judicial procedure, or more likely the agreement will enable both parties to use certain patents that are mutually exclusive.

Amazon Settles Kindle Fire Lawsuit

Amazon’s Kindle Fire saw its first lawsuit before it even reached consumer hands in October last year. The case came from Smartphone Technologies, owned by patent collecting and licensing firm Acacia Research Corporation. Smartphone Technologies accused Amazon of infringement of four of its patents related to a graphical feature having a surface area that is displayed on the Kindle Fire touch-sensitive screen.

But in a surprise move, Amazon and Smartphone Technologies filed court paper in Texas this week to end the differences. Both the companies asked the court to dismiss all the lawsuits that was filed in October.

The decision to settle with Acacia can be seen as a strategic move by Amazon to use the patents technology in its Kindle Fire tablet. This gambit could provide Amazon an option to use the patented technology, an advantage over other tablet manufacturers.