Zebra Technologies Corporation Enters into License and Settlement Agreement with Honeywell International, Inc.

On June 28, 2022, Zebra Technologies Corporation and Honeywell International, Inc. entered into a license and settlement agreement to resolve all patent-related litigation between the two companies. The agreement involves a mutual general release of all past claims, a covenant not to sue for patent infringement, and a payment by Zebra Technologies to Honeywell for past damages of $360 million.

Key Takeaways:

• Zebra Technologies Corporation and Honeywell International, Inc. entered into a license and settlement agreement on June 28, 2022, to resolve all patent-related litigation.
• The agreement involves a mutual general release of all past claims and a covenant not to sue for patent infringement.
• Zebra Technologies will pay Honeywell $360 million in damages, which will be charged in the Company's second-quarter results and paid in equal quarterly installments over eight quarters.
• The agreement also includes a royalty-free cross-license with respect to each party's existing patent portfolio for the lives of the licensed patents.
• The Company and Honeywell will dismiss all pending IP litigation in U.S. district courts, the U.S. International Trade Commission, and various courts outside the U.S. between the parties.
• The license and settlement agreement does not involve any of the disclosure provisions under the Securities Exchange Act of 1934.

Statistics:

• $360 million: The amount of past damages to be paid by Zebra Technologies to Honeywell.
• 8 quarters: The duration over which the damages will be paid in equal quarterly installments.
• 2nd quarter: The period in which the damages payment will be charged in Zebra Technologies' results.

Sources:

• UNITED STATES SECURITIES AND EXCHANGE COMMISSION, Washington, DC 20549, FORM 8-K CURRENT REPORT (June 30, 2022); Item 8.01 Other Events.