Imation To Pay Philips $53 Million To Settle Legal Dispute
Imation Corp. today announced that it has entered into a confidential settlement agreement ending all legal disputes with Philips Electronics N.V., U.S. Philips Corporation and North American Philips Corporation (collectively “Philips”). The companies had been previously involved in a complex series of disputes in multiple jurisdictions regarding cross-licensing and patent infringement related to recordable optical media. The settlement provides resolution of all claims and counterclaims filed by the parties without any finding or admission of liability or wrongdoing by any party.
As a term of the settlement, Imation will pay Philips $53 million over a period of three years. Other terms of the settlement were not disclosed. As a result of the settlement, Imation expects to record a charge, based on the present value of these payments, of approximately $49 million or $0.81 per share in the second quarter of 2009. The pre-tax cash impact for 2009 will be approximately $16.5 million, occurring during the second half of this year.