More settlement details - I like it! Seems to me that we are now Toyota's effective US partner, and likely still can sell to Honda & other autos. Plus legal expenses...
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by: tumchie (51/M/Seattle.WA) 07/07/04 09:47 am
Msg: 108796 of 108799
The Settlement
Under the terms of the settlement, ECD, Ovonic Battery, Cobasys and MEI, PEVE, Toyota have entered into an agreement pursuant to which the parties have cross-licensed current and future patents related to NiMH batteries filed through December 31, 2014, effective upon the date of settlement. The licenses granted by ECD, Ovonic Battery and Cobasys do not grant rights to MEI, PEVE or Toyota to use the licensed patents to (i) offer for sale certain NiMH batteries for certain transportation applications in North America until after June 30, 2007 or (ii) sell commercial quantities of certain transportation and certain stationary power NiMH batteries in North America until after June 30, 2010.
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Further, under the terms of the settlement, Cobasys and PEVE have agreed to a technical cooperation arrangement, including access to suppliers, to advance the state-of-the-art of NiMH batteries, which are widely used in hybrid electric vehicles (HEVs). Cobasys and PEVE have also agreed to collaborate on the development of next-generation high-performance NiMH batteries for HEVs. In addition to manufacturing their own line of NiMH batteries, Cobasys will be the distributor of PEVE's NiMH batteries to certain markets in North America through June 30, 2010.
Payments
ECD and Ovonic Battery will receive a non-refundable patent license fee of $10 million in consideration of the licenses granted to MEI/PEVE with respect to NiMH batteries for consumer applications.
Cobasys will receive a non-refundable patent license fee of $20 million in consideration of the licenses granted to MEI/PEVE and Toyota, of which $4 million will be placed in escrow to be used to pay PEVE upon reaching certain milestones under the next-generation high-performance NiMH battery module development project plan. Cobasys will, upon the receipt of the funds, pay Ovonic Battery $8 million and pay ChevronTexaco $8 million as partial reimbursement of legal expenses.
Cobasys will also receive royalties through December 31, 2013, on certain NiMH batteries sold by MEI/PEVE in North America. |
