UPDATE 1-RIM and Eatoni to work on text keyboard technology

(Adds details, stock price; changes dateline, previous NEW YORK)

TORONTO, Oct 10 (Reuters) - BlackBerry maker Research In Motion Ltd (RIM.TO)(RIMM.O) said on Wednesday it will work with Eatoni Ergonomics Inc to develop a new text keyboard technology.

The two companies signed an agreement in which Eatoni, which specializes in designing hardware and software for keyboards, would grant RIM a license to use its technology. RIM, in return, made an equity investment in Eatoni.

The pact stems from a settlement agreement between the two over a lawsuit and a counter-suit related to patent infringement, the companies said.

"The parties met in accordance with the court's mediation process and common goals were identified, which led to the settlement," RIM and Eatoni said in a statement.

The two companies' claims have been mutually dismissed and further details of the pact are being kept confidential.

RIM's shares closed 93 Canadian cents higher at C$114.58 on the Toronto Stock Exchange. On Nasdaq, they rose $1.36 to finish at $116.88.