Ford has settled a patent infringement dispute with the drivetrain company Paice.

In a statement, the companies said that Ford had agreed to license Paice’s technology but terms were not disclosed.

The two companies had each filed a lawsuit against the other regarding the patented technology. Based on this agreement, the lawsuits will be promptly dismissed, bringing an end to all patent infringement litigation between the two companies, they said.

In a joint statement, executives from both firms said: “We are pleased to have reached an amicable resolution.”

The case involves the same Paice patent at the centre of a dispute with Toyota Motor that is scheduled to go to trial next week.