Tuesday, software applications provider Blackboard, Inc. (BBBB) and Canada-based competitor Desire2Learn, Inc. announced that the companies have reached an agreement to license each other's worldwide e-learning patent portfolios and settle all outstanding litigation between them.
Under the agreement, the companies will dismiss their pending litigation. Both companies had filed many suits in various jurisdictions in the last few years. Additional details of the settlement were not disclosed.
Blackboard President and CEO Michael Chasen said, "We are pleased to have resolved our differences with Desire2Learn. Bringing this matter to resolution is in the best interests of both of our organizations, our respective clients and the broader education community."
"We're pleased to enter this agreement, and believe it is in the best interests of the educational community. We will continue to focus our attention on our clients, as well as the development of our products and services, " said John Baker, Desire2Learn President and CEO.
In 2006, Blackboard obtained a patent for "technology used for Internet-based education support systems and methods" and then filed a patent-infringement suit against rival Desire2Learn in July 2006.
In February 2008, a jury in the U.S. Eastern District Court of Texas awarded Blackboard $3.1 million in damages from Desire2Learn for patent infringement and refused to invalidate Blackboard's patent. The jury trial also resulted in an injunction against Desire2Learn's future software sales in the U.S.
In June, Blackboard filed a contempt motion against Desire2Learn with the U.S. Eastern District Court of Texas over intellectual property issues.
In July 2009, the U.S. Court of Appeals for the Federal Circuit decided that the trial jury was wrong and agreed with the Federal Circuit court and lower court by ruling that the first 35 claims of Blackboard's patent were invalid and claims 36 through 38 of total 44 claims were invalid.
BBBB closed Tuesday's regular trading session at $43.11, down $0.33 or 0.76%, on the Nasdaq.
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