Stamford, Conn. - Pitney Bowes received a $400 million windfall yesterday as Hewlett-Packard decided to settle a 1995 lawsuit concerning printer patent violations.
The settlement, which was reached just days before the case was to go to trial, also includes a deal that has HP and Pitney Bowes in a technology licensing agreement. Details of what this will entail were not released. Potentially other business and commercial deals may be struck, as well, the companies reported.
"These agreements allow both companies to avoid the continuing costs, time, uncertainty and distractions of lengthy legal battles, engage in mutually beneficial business opportunities and focus on meeting the needs of our customers," said Ann Baskins, HP's vice president, general counsel and secretary.
The settlement will force HP to revise its earnings statement for the fourth quarter ended April 30.