Network-1 announces it had agreed to a settlement of its patent infringement litigation against D-Link Corporation and D-Link Systems in the United States District Court for the Eastern District of Texas, Tyler Division for infringement of the Network-1's Remote Power Patent (U.S. Patent No. 6,218,930).
Under the terms of the settlement, D-Link has agreed to enter into a license agreement for the Remote Power Patent the terms of which include monthly royalty payments of 3.25% of the net sales of D-Link branded Power over Ethernet products, including those products which comply with the IEEE 802.3af and 802.3at Standards, for the full term of the Remote Power Patent, which expires in March 2020. The royalty rate is subject to adjustment beginning after the first quarter of 2008 to a rate consistent with other similarly situated licensees of the Remote Power Patent based on units of shipments of licensed products. In addition, D-Link has agreed to pay Network-1 $100,000.
The products covered by the settlement include Power over Ethernet enabled switches, wireless access points, network security cameras and VoIP telephones, among others. The terms of the License Agreement are subject to a definitive agreement between the parties, which will be accompanied by a dismissal with prejudice of all claims and counterclaims in the litigation currently pending in the Eastern District of Texas.