Remy to spend $32M to settle patent lawsuit

Pendleton-based Remy International Inc. has agreed to pay $32 million to settle a patent lawsuit with an Italian manufacturer that was filed in 2008, the company announced late Thursday.

Remy, which makes alternators and motors, said it will pay Tecnomatic SPA $16 million in cash this month and another $16 million on or before March 15, 2015, as part of a “cross-licensing arrangement” that will resolve the suit.

Remy will receive patents from Tecnomatic valued from $12.3 million to $15.9 million, the company said.

"It is in the best interests of Remy shareholders to finally settle this matter," Remy CEO Jay Pittas said in a written statement. "The settlement results in a permanent resolution of the matter and removes the uncertainty of a trial and a lengthy appeal process. The license agreement provides for sharing valuable technology for use across a wide variety of applications and solidifies the IP protection for both Remy and Tecnomatic hybrid motor products."

Remy shares were down 1.4 percent in afternoon trading, to $21.74 each.

Tecnomatic designs and makes automated assembly systems for numerous automotive components.

Remy reported a profit of $10.8 million in the second quarter ended June 30 on revenue of $299.3 million.

 

Please enable JavaScript to view this content.

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our updated comment policy that will govern how comments are moderated.

{{ articles_remaining }}
Free {{ article_text }} Remaining
{{ articles_remaining }}
Free {{ article_text }} Remaining Article limit resets in {{ count_down }} days.