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Iomega and Nomai kiss, make up, and get into bed together

Morgan Holt ZDNet.co.uk

Published: 29 Jun 1998 16:30 BST

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Last year, Nomai began manufacture of "Zip-compatible" disks and Iomega's publicity vehicle went into over-drive, alleging everything from incompatibility to damage of drive heads.

After mixed successes in US and European courts, Nomai accepted Iomega's offer of $21 million for a majority shareholding in the company. Nomai agreed to stop making the 100Mb XHD disks, and acknowledge Iomega's copyright in all things Zip.

And with a healthy dose of techno-humility, Iomega will also pay $3 million for the technology that is used in the manufacture of Nomai's XHD disks.

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