When Typo Products launched its keyboard-on-an-iPhone product, BlackBerry was not amused. The flailing mobile phone maker still has more than enough cash around to pay IP lawyers, and it launched a patent lawsuit early last year.

Typo was cofounded by American Idol host Ryan Seacrest, who agreed with a CNN interviewer that the product was meant to be "the best thing about a BlackBerry, within the iPhone." That statement went straight into BlackBerry's complaint.

That resulted in an injunction preventing Typo from selling its $99 keyboard. Things got worse when BlackBerry accused Typo of violating the injunction. A federal judge agreed, finding that Typo had skirted the ruling by selling nearly 19,000 keyboards after the injunction went into effect. In February, Typo was ordered to pay $860,000 plus other legal costs.

After that one-two punch, Typo has apparently decided to cut its losses. BlackBerry reported yesterday that it has reached a settlement with Typo and its related companies. Typo has agreed that it won't sell any keyboards for "smartphones and mobile devices with a screen size of less than 7.9 inches." Other terms, including any possible payments by Typo, are confidential.