Illumina and Affymetrix Reach $90 Million Settlement
Two more trials to determine validity, scheduled for February, and inequitable conduct were to occur. The settlement came as a surprise to some observers, given Affymetrix’s success in the first phase of the trial and a potential award of millions in historical royalty payments. However, the remaining trials and litigation costs may have proved too much of a distraction for Affymetrix.
San Diego and Santa Clara, CA 1/10/08—Affymetrix and Illumina have signed a settlement agreement, ending their four-year patent dispute. Under the agreement, Illumina will make a one-time payment of $90 million to Affymetrix without admitting liability. In exchange, Affymetrix has granted Illumina, its affiliates and its customers a perpetual covenant not to file suit for current products or services and has agreed not to sue Illumina for four years for products or services based on future technology. The covenant excludes photolithography, which Affymetrix uses to manufacture microarrays. In March 2007, a jury awarded Affymetrix $16.7 million in damages in the first phase of its suit against Illumina (see IBO 3/15/07). In October 2007, Affymetrix filed new suits against Illumina in the US, the UK and Germany (see IBO 10/31/07). Last month, at Illumina’s request, the US Patent and Trademark Office agreed to reexamine four of the disputed patents (see IBO 12/31/07).
