USL v. BSDi was a lawsuit brought in the United States in 1992 by Unix System Laboratories against Berkeley Software Design, Inc and the Regents of the University of California over intellectual property related to UNIX. The case was settled out of court in 1993 after the judge expressed doubt in the validity of USL's intellectual property, with Novell (who by that time had bought USL) and BSDi agreeing not to litigate further over the Berkeley Software Distribution (BSD), which would later develop into a range of BSD distributions, each tuned to its own specific audience's strengths and markets.
Read more about USL V. BSDi: Background, USL's Complaint, Pretrial, University's Counterclaim, Terms of The Settlement