Palm announced that it has settled a patent infringement lawsuit filed by Xerox Corporation nine years ago. Xerox issued a companion news release today. In April 1997, Xerox sued a predecessor to Palm, claiming that the handwriting-recognition technology marketed as Graffiti and formerly used in Palm OS handheld devices infringed a Xerox patent known as the Unistrokes patent. The agreement affords Xerox and Palm “patent peace.” Palm will pay Xerox $22.5 million for a fully paid-up license for three Xerox patents, including Unistrokes, and a seven-year mutual covenant not to sue for patent infringement within mutually agreed fields of use.