Thomson SA said it was granted an MPEG audio licence in an agreement with Sisvel SpA that resolved a dispute between the two companies over patents covering digital audio compression technologies known as mp3 and MPEG.

Audio MPEG and its parent company Sisvel had filed lawsuits for invalidating Thomson and Fraunhofer MP3 Patents last month.

The patents are owned by France Telecom, TDF, US Philips, Philips Electronics NV, Institut fur Rundfunktechnik and Bayerische Rundfunkwerbung and are licenced by Sisvel.

This agreement includes the dismissal of all litigation and administrative proceedings pending between Thomson and Sisvel, the resolution of all past disputes, and the granting of a MPEG audio license to Thomson.