Intellectual property
Nikon, ASML and Carl Zeiss SMT have agreed to a comprehensive settlement of legal proceedings and a cross-license of patents related to lithography equipment. A memorandum of understanding continues the previously announced stays on all patent disputes pending between Nikon, ASML and SMT in Asia and the USA. The three companies expect to execute definitive settlement and cross-license agreements and dismiss all legal proceedings between the parties in November 2004.
The terms of the memorandum include payments to Nikon by ASML and SMT. ASML will pay a total of EUR71mn. An initial payment of EUR 47mn will be made in 2004, with the remaining equal installments due in 2005, 2006 and 2007. SMT will pay a total of EUR 48mn. An initial payment of EUR 32mn will be made in 2004, with the remaining equal installments due in 2005, 2006 and 2007.
Applied Materials has entered into an agreement with Novellus Systems to dismiss all pending lawsuits between the companies involving allegations of patent infringement and to establish a structure that is expected to help avoid patent infringement lawsuits in the future. The agreement provides for a payment to Novellus of $8mn and waives a claim for unpaid royalties of approximately $3.5mn.
The agreement also contains provisions limiting for specified time periods each party's ability to sue each other (and each other's customers and, in certain circumstances, suppliers and distributors) for infringement of their respective patents covering products in certain technology areas. For existing products, the specified time period is five years, and for new products, it is two years.
There is no new licence of technology in the agreement. The agreement ends all pending lawsuits between the companies without either party admitting any liability.
