NEC Settles With Harris

NEC reaches settlement with Harris in digital microwave radio patent infringement lawsuits

August 4, 2005

2 Min Read

TOKYO -- NEC Corporation today announced that it hasreached a settlement with Harris Corporation (NYSE:HRS) in the patentinfringement lawsuits filed against it on September 3, 2004 in the U.S.District Court for the Northern District of California and the FederalCourtof Canada, which claimed infringement of NEC’s Digital Microwave Radio(“DMR”) patents by NEC Corporation.

As a result of the settlement, Harris has agreed to take aroyalty-bearing,non-exclusive license under NEC’s Digital Microwave Radio (“DMR”)patents. In addition, NEC agreed to dismiss all claims covered by thelawsuits filed on September 3, 2004 in the U.S. District Court for theNorthern District of California and the Federal Court of Canada.

“NEC is pleased to have resolved these litigations with terms andconditions that recognize the value of NEC’s DMR patents,” said BotaroHirosaki, senior vice president and executive general manager of NEC’sIntellectual Asset Operations Unit. “We value our intellectual propertyasan extremely important company asset and will continue to take a firmposition in enforcing its rights if our patents are infringed by othercompanies in the field.”

Under the terms of the settlement, Harris also agreed to dismiss allclaimscovered by the lawsuit filed on December 6, 2004 in the U.S. DistrictCourtfor the Eastern District of Texas. Furthermore, Harris agreed to grantNEC aroyalty-bearing, non-exclusive license under Harris’ patents for PrivateBranch Exchanges (“PBX”) and Key Telephone Systems as part of itsdismissal of all claims covered by the lawsuit filed on December 6, 2004inthe U.S. District Court for the Eastern District of Texas.

In conjunction with the settlement, Harris agreed to purchase from NEC,andNEC agreed to sell to Harris, certain PBX patents possessed by NEC.Also,the parties agreed to a patent cross license as to all other productcategories. No other terms of the settlement were disclosed.

NEC Corp.

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