H-P, Gateway Settle Litigation For $16.7 Million
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Gateway has agreed to pay Hewlett-Packard $47 million to settle a patent litigation between the two companies. It’s amazing to see Gateway go from $81 a share in 1999 to just over $2.25 a share in 2006. How times change!
The deal, announced by both companies Wednesday, resolves all patent infringement claims between the two companies that span three federal lawsuits, three International Trade Commission investigations and a state court lawsuit against eMachines, which Gateway acquired in 2004. Under the terms of the deal, Gateway will pay $16.7 million to H-P to resolve the litigation, without admitting fault. The remaining $30.3 million will go toward a new seven-year cross-licensing agreement between the two companies.
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