Deal includes an annual fee of at least $15 million per year for the next decade
Mar 15, 2024Impinj announced a successful settlement of its patent disputes with NXP Semiconductors N.V.
The agreement, which concludes a multi-year patent dispute during which Impinj prevailed in multiple trials, includes both an up-front payment and a yearly licensing fee.
As outlined in an 8-K filed with the U.S. Securities and Exchange Commission, all ongoing legal actions will be terminated, and both parties will release each other from any patent infringement claims prior to March 31, 2024.
$45 Million Settlement
The settlement includes NXP providing Impinj with a one-time payment of $45.0 million within five business days of the execution of the agreement, along with annual license fee payments starting from April 1, 2024, initially set at $15.0 million and increasing annually.
The agreement will remain valid until the expiration of certain Impinj patents, lasting approximately ten years.
In announcing the settlement, Chris Diorio, Impinj co-founder and CEO, said it is the company’s duty to protect the more-than 305 issued and allowed RAIN RFID patents.
CEO Diorio Comments
“(They) are the hard-earned fruits of that passion and reflect significant investment, dedication and sheer hard work,” said Diorio in a press statement after the settlement was announced. “We are committed to safeguarding those patented inventions, ensuring free and fair competition and innovating solutions for our enterprise end users.”
“I believe this settlement advances all three objectives and am pleased with the final outcome.”
Diorio noted that as, a leading RAIN RFID provider and Internet of Things pioneer, the company remains committed to free and fair competition.
“We maintain our unwavering support for global, royalty-free standards, and we believe that upholding intellectual property rights is an important way to encourage continued innovation that will ensure the industry thrives,” he said.
