SmarTire & Siemens Reach Infringement Agreement
On March 4 SmarTire Systems Inc. announced it had settled the patent lawsuit it filed against Siemens VDO Automotive Corp., now known as Continental Automotive Systems US, Inc. Prior to the February 20 settlement the lawsuit had been pending in the United States District Court for the Eastern District of Virginia. The terms of the settlement and license agreement between SmarTire and Siemens have not been disclosed, with SmarTire claiming the information to be confidential. In addition, Siemens has also acknowledged the validity and enforceability of SmarTire’s United States Patent No. 5,231,872 in a judgment that was entered by the district court on February 21, 2008.
Dave Warkentin, President of SmarTire, said, “We are very pleased with this settlement as it validates and strengthens our extensive patent portfolio. We expect to receive significant financial and non-financial benefits from the settlement, including substantial net proceeds after payment of withholding taxes and litigation-related expenses. It will have a positive impact and allow us to focus on growing our business. We will continue to invest in R&D, seek innovations in tyre pressure monitoring technologies and vigorously defend our intellectual property rights.”
SmarTire’s remaining patent infringement claim in the same case, against Schrader-Bridgeport International, Inc. and Schrader Electronics Ltd., will continue with a jury trial now set to begin on May 7, 2008, subject to the court’s ruling on pre-trial motions.