Corning May Hold Talks Over Patent Infringement Claim

Corning Inc., which makes glass used in fiber-optic networks, said it will hold talks with a Litton Industries Inc. unit to settle patent-infringement claims by Litton. It was not immediately clear the talks would take place. Litton Systems Inc. sued Corning and 14 other companies last week for allegedly infringing a patent on a device that helped usher in the commercial era of fiber-optic transmission. Woodland Hills-based Litton agreed to drop Corning from the suit as a result of the planned talks, said Daniel Collins, a spokesman for New York-based Corning. In a suit filed in federal court in Los Angeles, Litton and Stanford University claim the defendants have been infringing the patent by using, selling or making products that use a design for a fiber amplifier. The amplifier was invented by two Stanford researchers, patented in 1989 and licensed exclusively to Litton, the lawsuit claims. The other defendants are Nortel Networks Corp., the biggest maker of fiber-optic equipment; JDS Uniphase Corp.; Alcatel, Pirelli; Lucent Technologies Inc.; Tyco International Ltd.; Tycom Ltd.; Scientific- Atlanta Inc.; Ciena Corp. and SDL Inc. The other defendants were not immediately available for comment. On Friday, Corning shares closed down $6.50 at $90.44, while Litton closed down 63 cents at $44.25. Both trade on the NYSE.