The University of Waterloo has reached a settlement with a former student, following a dispute over technology developed in one of its labs.

Brian Adams was a graduate student when he discovered a new material that could be used to create a rechargeable zinc ion battery.

Adams had been working with the Nazar Research Group, a lab at the university, at the time. He went on to co-found start-up company Salient Energy, which develops battery technology.

Earlier this year, the university launched legal proceedings against Salient Energy, asking the court to recognize it as the sole owner of the discovery and related patents.

On Friday, the University of Waterloo released a joint statement announcing the dispute "was settled on mutually agreeable terms."

According to the statement, Salient Energy assigned its patent rights to the university and is no longer a joint owner of the intellectual property.

The statement also says the university granted the company a worldwide license to use the technology.