Imation Settles Philips Litigation16 Jul, 2009 By: Erik Gruenwedel
Imation Corp. will pay consumer electronics company Royal Philips $53 million over the next three years to settle litigation over patent infringement and licensing issues with Imation’s Memorex DVDs.
Complete terms of the agreement were not disclosed. However, the July 15 agreement covers all claims and counterclaims and will result in a charge of approximately $49 million for Imation’s second-quarter balance sheet. Imation will release its second-quarter results July 22.
“We are pleased to settle this very costly and distracting litigation and to eliminate an ongoing risk for the company,” said Frank Russomanno, vice chairman and CEO of Imation. “In addition to resolving our differences, we have established a framework for cooperation going forward.”