Applied To Pay Novellus $8M To Settle Patent Suit Over Chip Gear Systems

Law360, New York (September 26, 2004, 12:00 AM EDT) -- Chip equipment maker Applied Materials Inc. has agreed to pay rival Novellus Systems Inc. $8 million to dismiss patent litigation between the two companies, ending a seven-year legal spat.

The agreement provides for a payment to Novellus of $8 million and waives a claim for unpaid royalties of approximately $3.5 million.

The agreement also establishes a structure that is expected to help avoid patent infringement lawsuits in the future, with provisions limiting for specified time periods each party's ability to sue each other. For existing products,...
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