LANworks Inc., a small Maryland computer services company, has reached an agreement with computer industry giant Digital Equipment Corp. over Digital's use of a variation on LANworks's corporate name.

A U.S. District Court in Maryland last month granted Ellicott City-based LANworks, a four-year-old firm with seven employees and revenue of $1.5 million last year, a preliminary injunction against Digital's move to dub a new line of hardware and software products LanWORKS.

In computer jargon, LAN is an acronym for local area network, a group of personal computers connected to communicate directly with each other.

Robert Delp, vice president and treasurer of LANworks, said Digital agreed to make the injunction permanent. A source said the agreement was reached after discussions between the two companies' lawyers led to concessions on both sides. Delp declined to comment on that.

The injunction prevents Digital from using the LanWORKS name in Maryland, the District and Northern Virginia, areas served by the local company.

The source said that, under the concessions both sides agreed to, Digital will be allowed to use a catalogue that contains the name LanWORKS.

Delp said LANworks learned last May that Maynard, Mass.-based Digital, which had revenue of $12.9 billion last year, planned to market hardware and software under the name LanWORKS.

The Maryland firm sent Digital two letters concerning its use of the name before seeking the injunction.

LANworks was formed in 1986 by Delp, Sandra Stecker and Martin Lange. It provides consulting services; sells and installs computer hardware and software; and offers training and support to organizations interested in personal computer networks.

Delp said that the firm is expanding to western and southern Virginia and New York.