Microsoft and TomTom Settle GPS Patent Infringement Cases

Holding:

Microsoft Corp. (“Microsoft”)and TomTom N.V. (“TomTom”) have settled the patent infringement cases brought by Microsoft before the U.S. District Court for the Western District of Washington and the International Trade Commission (“ITC”) and by TomTom in the U.S. District Court for the Eastern District of Virginia. Under the settlement agreement, TomTom will pay Microsoft for coverage under the eight car navigation and file management systems patents in the Microsoft case. Also as part of the agreement, Microsoft will receive coverage under the four patents relating to global position system (“GPS”) included in the TomTom countersuit. The agreement, which has a five-year term, does not require any payment by Microsoft to TomTom. It covers both past and future U.S. sales of the relevant products. The parties did not specify in the agreement the financial terms of their settlement. The agreement includes patent coverage for Microsoft’s three file management systems patents provided in a manner that is fully compliant with TomTom’s obligations under the General Public License Version 2 (GPLv2). TomTom will remove from its products the functionality related to two file management system patents (the “FAT LFN patents”), which enables efficient naming, organizing, storing and accessing of file data. TomTom will remove this functionality within two years, and the agreement provides for coverage directly to TomTom’s end customers under these patents during that time.This agreement puts an end to the litigation between the two companies.

Detailed Summary:

In its complaint filed on February 25, 2009, Microsoft alleged that it is the owner of all right, title, and interest in U.S. Patent Nos. 6,175,789; 7,054,745; 6,704,032; 7,117,286; 6,202,008; 5,579,517; 5,758,352; and 6,256,642 (collectively, “the Microsoft patents-in-suit”).  It asserted that TomTom was “directly infringing and/or inducing others to infringe by making, using, offering to sell or selling in the United States, or importing into the United States, products or processes that practice inventions claimed in the Microsoft patents-in-suit.”  Complaint, paragraph 10.

These patents relate to portable navigation devices and software.  Specifically,

—U.S. Patent No. 6,175,789 (“the ’789 patent”) is entitled…

More Updates