IPG Photonics and Newport Settle Patent Lawsuit

Laser industry rivals IPG Photonics Corp. and Newport Corp. today announced that the two companies have settled patent infringement claims made against IPG Photonics by Spectra-Physics Inc., a subsidiary of Newport, as well as IPG Photonics' counterclaims against Spectra-Physics. Terms of the settlement were not disclosed.

California-based Newport makes advanced-technology products and systems for the semiconductor, communications, electronics, research, and life and health sciences markets. IPG Photonics is located in Massachusetts and manufactures high-performance fiber lasers and amplifiers for markets including materials processing, communications, medical and scientific, and research.

The settlement related to a complaint filed with the US District Court for the Northern District of California in June 2006 by Spectra-Physics alleging that some IPG Photonics optical fiber laser and amplifier products infringed a US patent it owned. According to a Securities and Exchange Commission filing IPG made in October, Spectra-Physics was seeking damages of more than $20 million for patent claims relating to laser-diode pumping of a single-mode fiber core of laser material through the use of a surrounding multimode pump cavity. The patent expires in June 2007.

IPG Photonics does not expect the agreement to have a material impact on its financial statements or condition, the company said in a statement.

The case was dismissed with prejudice under the settlement agreement. For more information, visit: www.newport.com or www.ipgphotonics.com