DOW JONES NEWSWIRES
Honeywell International Inc.'s (HON) Turbo Technologies unit
said it reached an agreement to pay $32.5 million to its
counterpart at BorgWarner Inc. (BWA) to end a four-year-old patent
dispute over cast titanium compressor wheels used in vehicle
turbochargers.
Honeywell on Monday said it will receive a paid-up license to
BorgWarner's asserted patents for the one-time payment. Other terms
of the deal weren't disclosed.
BorgWarner didn't immediately return calls for comment.
Honeywell said the U.S. Patent Office had reopened its
examination of the three disputed BorgWarner patents for the
compressor wheels, which are used to make vehicles more fuel
efficient, and preliminarily found them invalid.
BorgWarner had sought damages of more than $100 million and
asserted the award should be tripled for willful infringement.
Big industrial companies enjoyed the fruits of economic
improvement last year but still face rising material and fuel
costs. Honeywell, which makes aerospace, building control and
safety products, has benefited of late from a broad-based increase
in demand, while BorgWarner most recently posted
expectations-beating results largely thanks to foreign currency
exchange rates and contributions from recent acquisitions.
Honeywell shares were recently off 5 cents at $60.46, in line
with the broader market. The stock has risen by a third over the
past 12 months. BorgWarner was up 19 cents at $74.01 and has gained
89% over the past year.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
andrew.fitzGerald@dowjones.com