Biolase Technology Inc. (NSDQ:BLTI) kept the right to sell a cordless laser for dentists after settling a lawsuit with Discuss Dental, a Royal Philips Electronics (NYSE:PHG) subsidiary.

Discus claimed in April 2010 that Irvine, Calif.-based Biolase’s iLase device violated a Discus design patent.

Biolase agreed to what it called a "nominal" payment to Philips in return for all charges being dropped. Discus accused Biolase of design patent infringement, federal unfair competition, common law trademark infringement, unfair competition and violation of the California Unfair Trade Practices Act.

All charges have been dropped completely and the case dismissed without prejudice by Judge James Selna of the U.S. District Court for Central California.

Most of the settlement will be covered by Biolase’s insurance carrier, according to a press release.

“We are very pleased to have concluded this litigation, which arose during the tenure of prior management," Biolase chairman & CEO Federico Pignatelli said in the release. "I believed it was an unnecessary distraction to our current management team, whose efforts are solely focused on growing Biolase. We are obviously happy with the outcome.”

Philips acquired Discus in October 2010, folding it into the international conglomerate’s consumer lifestyle sector. Philips did not respond to a request for comment on the lawsuit.