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.