ESI Announces Settlement in IP Infringement Litigation
PORTLAND, Ore.--(BUSINESS WIRE)--
Scientific Industries, Inc. (NASDAQ:ESIO), a leading supplier of
innovative laser-based manufacturing solutions for the microtechnology
industry, today announced that the company has a reached a settlement
agreement with All Ring Tech Co. Ltd. (All Ring) related to ESI's claim
of infringement of one of its patents pertaining to electronic component
tester technology. All Ring has agreed to pay ESI the sum of TWD 475
million (approx. USD 16.3 million) as settlement and to discontinue
selling the infringing products. ESI estimates that the net financial
impact of the settlement and related costs will be an increase of
approximately $15.8 million to operating income and approximately $10
million to net income after income taxes, for its fiscal 2013 third
quarter, which ends December 29, 2012.
"ESI has made significant investments over many years to develop
innovations in passive component test technology for our customers,"
said Sean Phillips, General Manager, ESI Component Test and Inspection
Division. "We are pleased that our efforts through the Taiwan court
system have been rewarded by reaching a significant monetary award
settlement with All Ring. This outcome is the result of ESI's commitment
to vigorously defend itself against those choosing to infringe our
Intellectual Property. Our customers depend on ESI for innovative test
solutions to meet their challenges in the component test marketplace.
Defending our IP enables us to continue investing in solutions for our
About ESI, Inc.
ESI is a leading supplier of innovative, laser-based manufacturing
solutions for the microtechnology industry. Our systems enable precise
structuring and testing of micron to submicron features in electronic
devices, semiconductors, LEDs and other high-value components. We
partner with our customers to make breakthrough technologies possible in
the microelectronics, semiconductor and other emerging industries.
Founded in 1944, ESI is headquartered in Portland, Ore., with global
operations from the Pacific Northwest to the Pacific Rim. More
information is available at www.esi.com.
Brian Smith, 503-672-5760
Source: Electro Scientific Industries, Inc.
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