Network-1: Polycom to pay $5M license initiation fee as part of settlement
Network-1 Technologies announced that it agreed to settle its patent litigation against Polycom pending in the United States District Court for the Eastern District of Texas, Tyler Division, for infringement of Network-1's Remote Power Patent. Polycom was one of sixteen original defendants named in the litigation. Under the terms of the settlement, Polycom will license the Remote Power Patent for its full term which expires in March 2020, and pay a license initiation fee of $5M for past sales of its Power over Ethernet products. In addition, Polycom will pay ongoing royalties based on its sales its PoE products, including those PoE products which comply with the Institute of Electrical and Electronic Engineers 802.3af and 802.3at Standards. $2M of the license initiation fee will be paid within 30 days and the balance will be paid in three annual installments of $1M beginning in October, 2017. Payments due in October 2018 and October 2019 need not be paid if all asserted claims of the Remote Power Patent have been found invalid.