Lexmark and HP have settled their legal battle over an employee who jumped ship from the former to the latter. 

Bruce Dahlgren was hit by a restraining order that kept him from overseeing HP's business in North America for one year following his move from Lexmark. 

Dahlgren was vice president and general manager of Lexmark's North America Printing Solutions and Services Division, becoming the head of enterprise sales for HP's Imaging and Printing Group after his switch.

Legal proceedings first began when HP and Dahlgren filed a complaint against Lexmark in the Superior Court of the State of California for the County of Santa Clara.

Lexmark responded with a countersuit against HP and naming Dahlgren, Vyomesh Joshi, Patricia Dunn and Mark Hurd.

This was followed by a separate civil court case filed by Lexmark in a US Circuit Court in which Dahlgren issued a countersuit against Lexmark.

However, an injunction issued in the civil action backed the clause in Dahlgren's Lexmark contract that stopped him moving to a competitor and carrying out a similar role for one year.

Today's agreement settles all claims relating to both court cases.

"HP is pleased to have resolved all outstanding litigation with Lexmark in California and Kentucky relating to Bruce Dahlgren's joining HP," said an official HP statement.

"During the litigation, Bruce Dahlgren and HP complied with all of the restrictions imposed by the Kentucky court's restraining order, and the settlement clearly acknowledges this."

HP said that it is now looking forward to Dahlgren making a contribution to the company's business in North America.

As part of the settlement HP agreed to pay $525,000 (£270,000) to Lexmark, although both parties will pay their own legal costs.

Dahlgren also agreed not to disclose any confidential or proprietary information or to steal staff or customers away from his former employer.

The notebooks he used while employed at Lexmark will be destroyed on 9 June 2009.