Netpickle, Iconix Settle their legal troubles

Netpickle and Iconix say they have made peace.

Widget-maker Netpickle has been involved in a legal tussle with anti-phishing company Iconix, which is the former employer of Netpickle co-founders Lance Tokuda and Jia Shen. Now both companies say they have reached a tentative settlement.

Both Netpickle and Iconix confirmed the settlement existed but declined to elaborate on the terms of the settlement. “Barring unforeseen problems, the litigation is done,” said Shen today, in Netpickle’s first public comments on the matter. “We’ve agreed on a constructive path” confirmed Iconix CFO Bob Zager.

In September, a district court judge ruled that Iconix had presented sufficient evidence against Tokuda and Shen to issue a preliminary injunction. The court ruled it likely Tokuda and Shen had begun development of its slideshow widgets in violation of their obligations to Iconix and a similar product being developed internally.

Though coverage by PE Week and Valleywag had focused on the fallout for Netpickle investors, which include Sequoia Capital, Shen maintained the firms “have been extremely supportive. They did their due diligence.” He also confirmed that some of NetPickle’s investment came in notes rather than equity, as we had reported earlier. This would have minimized the damage to the VCs should the company have been forced to close.

[Liz will add more information later. She is currently in transit, and filed this report from her trusted Blackberry- Om]