The agreement recognizes both companies' patent rights for glue-free joints, to the point that both parties will stop pursuing legal actions against each other in the United States.

Unilin filed against Pergo relating to the SmartLock joint on June 22, 2004. Pergo filed against Shaw relating to the Uniclic system two days later.

Unilin said that it believes this agreement strengthens the patent position of both companies and creates new possibilities to further enforce these rights against unlicensed competitors.

Pergo said the agreement is a "very positive step which will allow both companies to focus on business development and market activities."