America Online and Kesmai Work It Out

America Online and Kesmai Corp. have reached a settlement in their legal dispute, Reuters is reporting.

The terms of that settlement will not be disclosed, but AOL and Kesmai will continue to work with each other through at least February 2001. Under the terms of the agreement, Kesmai will remain a "significant aggregator of games for the AOL Games Channel."

Kesmai had filed suit against AOL in September 1997, accusing AOL of violation of federal antitrust laws, monopolistic business practices, anticompetitive behavior, fraud, trademark dilution, and defamation. The suit stemmed from AOL's purchase of the Imagination Network; Kesmai came to feel that AOL was favoring its own games at the expense of third-party game providers, such as Kesmai.