DETROIT, May 16, 2011 /PRNewswire/ -- Honeywell (NYSE: HON) Turbo Technologies has reached an agreement with BorgWarner Turbo Technologies to settle a four-year-old patent dispute relating to cast titanium compressor wheels used in select commercial vehicle applications.
Under the terms of the settlement Honeywell will receive a paid-up license to BorgWarner's asserted patents in exchange for a one-time payment of $32.5 million. Other terms of the settlement are confidential.
Honeywell was prepared to defend its position at trial in the District Court for the Western District of North Carolina but felt the settlement resolving the dispute at a fraction of BorgWarner's claim was the best solution for Honeywell and its customers. BorgWarner had sought damages of more than $100 million and asserted the award should be tripled for willful infringement.
The U.S. Patent Office has reopened examination of the three BorgWarner patents in dispute and has preliminarily found them invalid.
Honeywell Turbo Technologies is the leading automotive turbocharger developer in the world, supplying technology solutions to nearly every major automaker in the world. The Turbo Technologies business is part of Honeywell Transportation Systems, which enhances vehicle performance, efficiency and appearance through state-of-the-art technologies, world-class brands, and global solutions tailored for its automotive customers around the world.
Honeywell International (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.
This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings under the Securities Exchange Act.
SOURCE Honeywell Turbo Technologies