Pitney Bowes and Hewlett-Packard Settle Litigation, HP to Pay $400 Million
Press release from the issuing company
STAMFORD, Conn., June 4, 2001 Pitney Bowes Inc. (NYSE: PBI) and Hewlett-Packard Company (NYSE: HWP) announced agreements which settle litigation between the companies and provide ongoing business and technology opportunities for both firms.
Under the terms of the agreements, the companies resolved all pending patent litigation without admission of infringement, and HP will pay Pitney Bowes $400 million in cash. A 1995 lawsuit brought by Pitney Bowes involving print technology patents was scheduled to go to trial today in the U.S. District Court for the District of Connecticut, and suits by HP were pending. Additionally, the companies entered into a technology licensing agreement and expect to pursue business and commercial relationships. No further details of the agreements will be made available.
"Pitney Bowes has a long history of licensing its technology, as part of its strategic deployment of its intellectual property assets, and currently has license agreements with companies in a variety of industries, including printing, word processing, shipping and mailing. The resolution of these issues allows us to extend our working relationship with HP and enables the continued expansion and development of future products and services that benefit our respective customers," said Murray D. Martin, Executive Vice President and Group President, Global Mailing Systems, Pitney Bowes. "We are pleased that we were able to reach agreement with HP before trial and believe the settlement is good for both parties."
"These agreements allow both companies to avoid the continuing costs, time, uncertainty and distractions of lengthy legal battles, engage in mutually beneficial business opportunities and focus on meeting the needs of our customers," said Ann Baskins, HP Vice President, General Counsel and Secretary.
HP will revise its previously released statement of earnings for its second fiscal quarter ended April 30, 2001 by recording the $400 million settlement as a pre-tax charge for such quarter. HP will file its unaudited consolidated financial statements for such quarter in a Quarterly Report on Form 10-Q by June 14, 2001.
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