Odetics to Accept Less in Patent Settlement

Anaheim-based Odetics Inc. said Monday it has agreed to accept a reduction in the final payment from competitor Storage Technology Corp. in an amended settlement of their 4-year-old patent infringement lawsuit.

Under the agreement, Storage Technology is paying $17.8 million rather than $20 million over two years to complete the settlement.

“We’ve accepted a discounted amount, because they’re paying early,” Odetics chief operating officer Greg Miner said.

In October 1999, Storage agreed to give Odetics $100 million to settle the patent infringement lawsuit and made an $80-million payment. The agreement settled all outstanding patent litigation between the two companies.

Odetics said it will list the final payment as nonoperating income in its first quarter ending June 30.

Odetics had accused Storage Technology in Louisville, Colo., of infringing on patents related to data storage in network computing.

Odetics’ stock dropped $1.19 to $11.56 a share in Nasdaq trading. Storage Technology shares closed at $11.88, down 38 cents, on the New York Stock Exchange.