IBM is hoping for a 'more productive relationship with Amazon'

Under the deal, Amazon said it would pay IBM an undisclosed sum of money, while both firms agreed to allow the other access to some of its technology.

IBM sued Amazon in October, alleging key components of Amazon's website were developed and patented by IBM.

Amazon counter-sued two months later, accusing IBM of violating five separate Amazon patents.

In a joint statement, both companies said they had now settled their dispute.

Amazon said the settlement would not affect the firm's second-quarter results, adding that the payout to IBM had been factored into its financial guidance for the forthcoming three-month period.

Dan Cerutti, IBM's general manager of software intellectual property, said he was pleased that the matter had been "resolved through negotiation and licensing".

"We look forward to a more productive relationship with Amazon in the future," he added.

IBM's original complaint had focused on patents covering online customer recommendations - a key part of Amazon's sales strategy.