By Sindhu Sundar

Law360, New York (October 24, 2011, 5:41 PM ET) -- Specialty paper maker Schweitzer-Mauduit International Inc. on Monday announced it has reached a $20 million licensing agreement with rival Delfortgroup AG as part of a settlement ending its U.S. International Trade Commission suit claiming Delfortgroup infringed two patents for self-extinguishing cigarette paper.

As part of the settlement, Schweitzer-Mauduit has issued Delfortgroup a worldwide nonexclusive license to sell the lower ignition propensity cigarette paper, which is used to make fire-resistant cigarettes, Schweitzer-Mauduit said in a statement.

The licensing agreement will give Schweitzer-Mauduit an annual minimum royalty of...