Acacia Research Subsidiary CombiMatrix Corporation Announces Settlement of Litigation With Nanogen
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Oct. 1, 2002--Acacia Research Corporation (Nasdaq:ACRI) announced today that its subsidiary CombiMatrix Corporation has entered into an agreement with Nanogen to settle all litigation pending between the two companies. All litigation between the companies will be promptly dismissed.
As part of the settlement, Nanogen acknowledges and agrees that CombiMatrix owns all rights to its issued patents, namely U.S. Patents Nos. 6,093,302, 6,280,595 and 6,444,111, all foreign equivalents and any new claims issued via open continuations of the patents. Nanogen also waives all rights to make any future claims of any type, regarding the patents, and shall not take any future actions challenging the validity of the patents, or actions that interfere with CombiMatrix's partners' and customers' use of the patented technology.
CombiMatrix will issue Nanogen approximately 4 million shares of its stock and agrees to pay Nanogen $500,000 within 30 days and an additional $500,000 within one year. CombiMatrix will also pay Nanogen a minimum of $37,500 per quarter for the period October 1, 2003 through October 1, 2004 and $25,000 per quarter thereafter until the patents expire. These payments can increase to a maximum $1.5 million annually, based on 12.5% of the first $12 million of CombiMatrix's annual net revenues from product sales. No payments to Nanogen are required from revenues resulting from upfront licensing payments, research and development payments or milestone payments.
"This settlement removes an impediment that has slowed our progress with potential business partners," said Dr. Amit Kumar, President and CEO of CombiMatrix Corporation. "We are now in a position to move forward with the development and sale of our products." |
