3Com Corp. (Nasdaq: COMS) provides secure, converged voice and data networking solutions. The company today announced an agreement with Realtek Group that puts an end to a lengthy patent dispute between the companies and put millions of dollars back in the bank for 3Com.
Per the agreement, Realtek will pay 3Com $70 million within the next 45 days, concluding an argument regarding certain networking technologies. Neal D. Goldman, executive vice president, chief administrative and legal officer of 3Com, said the settlement will allow Realtek to utilize 3Com’s technology legally.
“We are very pleased with the terms of our agreement with Realtek,” Goldman commented. “The agreement for $70 million puts to rest the lawsuit and enables Realtek to legally use the licensed patents and related technology without disruption. We have a substantial number of networking patents and are willing to license use of those patents as part of our licensing program.”
On April 9, 2008, a jury in U.S. District Court for the Northern District of California found all six of 3Com’s claims of patent infringement by Realtek valid. The jury awarded 3Com $45.3 million for past patent infringement. The patent case will be dismissed when Realtek fulfills obligations under the agreement.
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