DETROIT (AP) -- Honeywell International Inc. said Monday that it will pay BorgWarner Inc. $32.5 million to resolve a four-year-old patent dispute over auto parts.
The one-time payment gives Honeywell access to BorgWarner's three patents for cast titanium compressor wheels, which are used in turbochargers for commercial vehicle engines. Other terms of the settlement were confidential.
Auburn Hills, Mich.-based BorgWarner had charged that Honeywell had infringed on three patents for the design of titanium compressor wheels used in turbochargers in commercial vehicle engines.
Morristown, N.J.-based Honeywell said that an initial examination by the U.S. Patent Office had found that BorgWarner's complaints were invalid. The company said that it was prepared to take the case to trial but believed that settling was "the best solution." BorgWarner had sought more than $100 million in damages and a tripling of the award for willful patent infringement.
BorgWarner Chairman and CEO Timothy M. Manganello said the company is "pleased with its return on this investment -- both through the development and sale of innovative products and through the receipt of fees related to patent infringement lawsuits."
BorgWarner shares fell 64 cents to close at $73.18, while Honeywell shares dropped 39 cents to finish at $60.12.
The one-time payment gives Honeywell access to BorgWarner's three patents for cast titanium compressor wheels, which are used in turbochargers for commercial vehicle engines. Other terms of the settlement were confidential.
Auburn Hills, Mich.-based BorgWarner had charged that Honeywell had infringed on three patents for the design of titanium compressor wheels used in turbochargers in commercial vehicle engines.
Morristown, N.J.-based Honeywell said that an initial examination by the U.S. Patent Office had found that BorgWarner's complaints were invalid. The company said that it was prepared to take the case to trial but believed that settling was "the best solution." BorgWarner had sought more than $100 million in damages and a tripling of the award for willful patent infringement.
BorgWarner Chairman and CEO Timothy M. Manganello said the company is "pleased with its return on this investment -- both through the development and sale of innovative products and through the receipt of fees related to patent infringement lawsuits."
BorgWarner shares fell 64 cents to close at $73.18, while Honeywell shares dropped 39 cents to finish at $60.12.