Snap-on Ordered to Pay SPX in Patent Case

Toolmaker Snap-on Inc. said a federal arbitrator ordered it to pay $44 million to industrial products and services company SPX Corp. in a case that involved alleged patent infringement and the hiring of an executive.

Kenosha, Wis.-based Snap-on said it will take a charge of $27.9million, or 48 cents a share, in the fourth quarter for the after-tax cost of the ruling.

The ruling relates to a complaint Snap-on filed in April 1996 against Muskegon, Mich.-based SPX alleging infringement of certain Snap-on patents for engine analyzers and improper hiring of Sun Electric’s former president. Sun was acquired by Snap-on in 1992.

SPX filed a counterclaim alleging infringement of certain SPX patents, Snap-on said.