Open source specialist Red Hat has settled a lawsuit brought by Agfa Monotype over alleged breaches of the font designer's copyrights and trade marks. The leading Linux distributor has recorded a $500,000 charge in obtaining a license to include the fonts in future products.

The settlement was revealed in a recent filing by Red Hat with the US Securities and Exchange Commission. The company was sued by Agfa Monotype in May 2002 for copyright and trade mark infringement, and again in December 2002, for violations of the Lanham Act (which covers liability for unfair competition) and for unfair and deceptive trade practices.

Red Hat counterclaimed, arguing that the copyrights and trade marks were unenforceable or invalid, but last month reached a settlement with the font designer.

According to the filing, Red Hat agreed to a deal which provides a license to distribute a number of Agfa's commercial fonts for five years. Red Hat reported that it has recorded a charge of $500,000 in connection with the deal.

All claims relating to the case have now been dismissed.

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