Pick Systems OKs License Arrangement

Pick Systems, an Irvine firm whose operating system is widely used in the computer industry, said Wednesday it has signed an agreement with Prime Computer Inc. to permit the Massachusetts-based computer maker to use Pick’s trademark when marketing its Prime INFORMATION software-based operating system.

The licensing agreement, signed Tuesday, ends a dispute between the two companies that began several years ago, when Prime developed a line of software using an operating system similar to Pick’s patented operating system.

The operating system is one of the most important parts of a computer because it determines how the computer organizes, stores and retrieves information.

Pick never filed a lawsuit, primarily because there was no evidence that Prime improperly used Pick’s technology, said Rich Lauer, Pick’s vice president of marketing. Nevertheless, he said, the new agreement “brings them legitimately into the regular Pick community.”

However, Paul LaBelle, a spokesman for Prime, said the licensing agreement is viewed by Prime as something that will enhance the marketing of its equipment and was “not arrived at out of any conflict” with Pick over development of Prime’s operating system.

Fee, No Royalties

Neither company would disclose how much Prime will pay for the right to use the Pick trademark. LaBelle said Prime will pay a one-time fee, but no royalties. Typically, Pick requires firms using its system to pay one-time fees of $50,000, plus royalties, Lauer said.