Proxim settles patent lawsuit with Symbol

Wireless networking provider Proxim, Tuesday announced that it has reached a settlement agreement with Symbol, resolving all outstanding litigation between the two wireless companies.

According to the settlement, Proxim will pay Symbol $22.75 million 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 Aug. 4, a judgment was entered in the U.S. District Court for the District of Delaware awarding Symbol $23 million in damages plus $3 million in interest from Proxim. The judgment followed a jury award in Symbol’s favor on Sept. 12, 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,” Peter Lieb, Symbol senior vice president and general counsel, said in the statement. “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 favorable results in defending that intellectual property.”

Under the terms of the settlement agreement, Proxim will make a series of payments to Symbol, beginning on Sept. 30.

“We are pleased to have this matter finally resolved and behind Proxim,” Frank Plastina, chairman and CEO of Proxim, said in a statement. “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 cooperation between Proxim and Symbol.”