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Terms of the settlement, which covers all outstanding suits between the companies, were not disclosed, but the companies said that their customers would not be affected.
In mid-May, a jury awarded Macromedia $4.9m (£3.1m) in damages after finding that Adobe's Illustrator graphics program and Premiere video editing program infringed Macromedia patents. That ruling came a week after a US jury awarded Adobe $2.8m (£1.8m) in a separate suit against Macromedia.
Macromedia had at least one suit still outstanding against Adobe before the settlement was announced. That suit was set to go to trial in 2003.
The two companies are rivals in a number of graphic and Web design markets, including illustration, Web site creation tools and Web graphics.