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Telecommunications equipment industry

Edify Corporation Settles Patent Dispute with Lucent Technologies

Strategic Insights

— 1 min read

Edify Corporation, a global leader in enterprise self-service solutions, has reached a patent cross-license agreement with Lucent Technologies Inc. to settle a longstanding patent infringement dispute. The dispute, which originated in April 1996, has been resolved after two years of discussions. Under the agreement, Edify will pay Lucent a one-time fee and future license fees, which are not expected to significantly impact Edify's results from operations. The settlement includes a non-recurring charge of $5 million, which is reflected in the company's financial statements for the three and nine months ended September 30, 1998.

Key Takeaways:

  • The patent cross-license agreement settles a patent infringement dispute between Edify Corporation and Lucent Technologies Inc. that originated in April 1996.
  • The agreement includes a one-time fee and future license fees that are not expected to be material to Edify's results from operations.
  • Edify has recorded a non-recurring charge of $5 million, which is reflected in the company's financial statements for the three and nine months ended September 30, 1998.
  • The settlement is a material subsequent event affecting the consolidated financial statements for the three and nine months ended September 30, 1998.
  • Edify's self-service solutions have been licensed to over 1,150 organizations worldwide.
  • The company's software is distributed directly and through leading solutions providers, application partners, and distributors worldwide.
  • Edify Corporation is headquartered in Santa Clara, California, and has over 400 employees.

Statistics:

  • The patent dispute originated in April 1996.
  • The companies have been in discussions for the past two years.
  • Edify will pay Lucent a one-time fee and future license fees.
  • The non-recurring charge of $5 million is approximately 29 cents per diluted share.
  • Edify's software has been licensed to over 1,150 organizations worldwide.
  • The company has over 400 employees.
  • Edify's self-service solutions offer organizations the means to automate, integrate, and personalize interactions with customers and employees, yielding stronger, more profitable relationships.

Sources:

  • PRNewswire, "Edify Corporation Announces Settlement of Patent Dispute with Lucent Technologies Inc.," November 3, 1998.

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