Communication services provider UTStarcom, Inc. (UTSI) and infrastructure hardware and software company Starent Networks Corp. (STAR) announced Thursday that they have agreed to settle all legal disputes between them, with Starent making a one-time payment of $3.5 million to UTStarcom.
Both the companies locked horns over patent rights on Starent's ST-16 Intelligent Mobile Gateway product, following which UTStarcom filed a lawsuit citing infringement of two of its patents.
According to the agreement announced today, Starent will make a one-time payment of $3.5 million to UTStarcom and receive a perpetual royalty-free license to UTStarcom patents. The statement from UTStarcom announcing the agreement however didn't name the patents involved.
The agreement also involves dismissal of two pending litigations in the United States District Courts for the Northern District of Illinois, which was filed in May 2007, and the Northern District of California, which was filed in February, 2005.
UTSI is losing $0.03 or 1.36% and is trading at $2.17 on a volume of 87 thousand shares on the Nasdaq.
STAR is gaining $0.03 or 0.09% and is trading at $33.83 on a volume of 1.52 million shares on the Nasdaq.
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