(By Balaseshan) Valence Technology Inc. (NASDAQ:VLNC), a maker of advanced energy storage solutions, said it entered into a patent dispute settlement agreement with Hydro-Quebec related to lithium metal phosphate technology.
Valence said the settlement agreement resolves existing litigation with no monetary payment made by either side, and each party bearing its own costs and attorneys fees.
Under the terms of the settlement, all claims in the litigation have been dismissed and Valence Technology is free to sell its proprietary lithium magnesium metal phosphate products, without liability to The University of Texas, Hydro-Quebec, or any of their related entities.
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In addition, Valence Technology's customers and suppliers are also removed from any liability related to the lawsuit.
Valence Chief Executive Robert Kanode said this settlement ends an almost eight year legal dispute and the company believes would help accelerate broad-based market penetration of lithium metal phosphate products.
In February 2012, Valence prevailed in seeking the dismissal of an appeal by Hydro-Quebec (HQ) of a decision of the European Patent Office revoking a HQ European patent related to lithium metal phosphate technology.
In May 2011, a U.S. District Court judge accepted the Special Master's Markman Report in the patent infringement lawsuit filed by Hydro-Quebec. Valence believed the adoption of the Special Master's Report set the definitions for terms in the claims of the two patents in suit are favorable to its positions of non-infringement and invalidity as set out in its pleadings in the lawsuit.
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Valence develops, manufactures and sells dynamic energy systems utilizing its phosphate-based lithium-ion technology. The company engaged in the development of lithium iron magnesium phosphate dynamic energy storage systems.
VLNC is trading up 2.45% at $0.543 on Wednesday. The stock has been trading between $0.51 and $1.34 for the past 52 weeks.