News Article
Intellectual property
Varian Semiconductor Equipment Associates (VSEA) has received a $22mn payment from Applied Materials.
Varian Semiconductor Equipment Associates (VSEA) has received a $22mn payment from Applied Materials. The payment is the result of a panel ruling in the second phase of arbitration between the companies concerning the validity of several Varian Semiconductor patents.
The payment represents Applied Materials' estimate of the aggregate amount of back royalties plus interest it owes to Varian Semiconductor under a patent license agreement dated January 1, 1992. Varian Semiconductor has until November 1, 2004, to notify the arbitration panel whether it will request a hearing on the amount of back royalty payments plus interest owed under the agreement.
Applied Materials is also required to pay quarterly unit-based royalty payments to Varian Semiconductor on future sales of certain products found to be within the scope of the agreement up to its expiration in March 2007.
