Wireless networking provider Proxim, announced that it has reached a settlement agreement with Symbol Technologies, resolving all outstanding litigation between the two wireless companies.
According to the settlement, Proxim will pay Symbol $22.75m (£12.7m) for previous sales of infringing products. Proxim will also pay Symbol a royalty fee for future sales of wireless Lan products covered by Symbol patents for the life of those patents and will transfer certain patents and patent applications to Symbol.
On 4 August, a judgment was entered in the US District Court for the District of Delaware awarding Symbol $23m in damages plus $3m in interest from Proxim. The judgment followed a jury award in Symbol's favour on 12 September 2003.
The award was based on an assessment of a 6% royalty for sales of infringing products, according to a statement released by Symbol.
"We are extremely pleased with the outcome of this precedent-setting litigation, which has validated Symbol's wireless intellectual property and confirmed Symbol's entitlement to a 6% royalty on these patents," said Peter Lieb, Symbol senior vice-president and general counsel.
"We believe Symbol's intellectual property is an important corporate asset and this settlement agreement is another example of Symbol's superior track record in reaching favourable results in defending that intellectual property."
Under the terms of the settlement agreement, Proxim will make a series of payments to Symbol, beginning on 30 September.
"We are pleased to have this matter finally resolved and behind Proxim," said Frank Plastina, chairman and chief executive officer of Proxim.
"The most important result of this agreement is that Proxim can now focus solely on taking full advantage of its unique market position in both the Wi-Fi and emerging WiMax markets. We also believe this agreement is an important step toward what we hope is joint opportunity and co-operation between Proxim and Symbol."
Linda Rosencrance writes for Computerworld