DURHAM, N.C. and BOSTON, March 23 -- Semiconductor company Cree Inc. and Boston University (BU) announced they reached a settlement last week in a lawsuit brought against AXT Inc., of Fremont, Calif., in June 2003, alleging infringement of US Patent No. 5,686,738. The parties have agreed to dismissal of all claims and counterclaims. Financial terms were not disclosed. The patent, which Cree licenses from BU, relates to technology developed by Professor Theodore Moustakas for gallium nitride-based buffer layers used with sapphire and other substrates. 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