Amsterdam-based N2IT Holdings and Native Instruments have reached a settlement in a patent infringement litigation over their products made for DJs, Final Scratch and Traktor Scratch.

N2IT claims patent rights in Final Scratch, a hardware/software combination that allows DJs to use a special time-coded vinyl record on a conventional turntable to manually control the playback of digital music tracks in a laptop. In a suit filed in May against Native in the federal District Court in Los Angeles, the company claimed that Native's new Traktor Scratch infringed that patent.

The parties announced today that they reached a settlement and have agreed to dismiss their claims. Native acknowledged the validity of N2IT's patents, and is now fully licensed worldwide and paying a royalty under N2IT's patents for digital music playback control, according to an N2IT statement.

As part of the settlement, Native granted a worldwide license to N2IT on related patent pending technology, the statement said. Representatives from both parties commented that the settlement is an equitable resolution.

Other terms of the settlement were not disclosed.