Patent spat settled for $29.1 million

Honeywell announced today that BorgWarner will pay it $29.1 million to settle a patent dispute relating to variable geometry turbochargers.

Honeywell announced today that BorgWarner will pay $29.1 million to settle its patent dispute relating to variable geometry turbochargers. This settlement grants BorgWarner a limited license under the relevant Honeywell patent.

The settlement follows a January 2003 ruling by the district court in Dusseldorf, Germany requiring BorgWarner to cease production of certain models of its variable turbine geometry (VTG) turbochargers that infringe the Honeywell patent.

Following a temporary injunction granted by the same court, BorgWarner had earlier paid Honeywell $25 million in exchange for a license that was valid through to June 30, 2003.

‘We’re delighted to have reached a settlement with BorgWarner that provides us a fair return on our pioneering variable geometry turbocharger technology, while enabling BorgWarner to meet its commitments to our mutual customers,’ commented Rob Gillette, president and CEO of Honeywell’s Transportation and Power Systems business.