- Finisar, Source Photonics Settle Patent Dispute
SUNNYVALE, Calif., Sept. 20, 2010 — Finisar Corp. announced recently its entrance into a settlement and cross license agreement with Source Photonics Inc. to resolve the lawsuit it filed claiming infringement on its portfolio of digital diagnostics and transceiver module patents.
The agreement also provides a general release to MRV Communications Inc.
Under the terms of the settlement, Source Photonics will pay a license fee to the subsystems and components supplier in the amount of $14.5 million for a fully paid-up license to its digital diagnostics and transceiver module patents, good through Dec. 31, 2015.
It also provides a fully paid-up license to Finisar of certain Source Photonics patents and a mutual covenant not to sue for certain products currently made or sold by either company, in each case through Dec. 31, 2015.
If Source Photonics is subject to a change in control, shipments subject to the license granted by Finisar will be limited to a 20 percent annual revenue growth rate.
For more information, visit: www.finisar.com