Malibu Boats said it settled the patent infringement cases brought by Malibu against MasterCraft Boat Company, LLC before the US District Court for the Eastern District of Tennessee.
Malibu said that under the terms of the settlement MasterCraft will make a one-time payment to Malibu Boats and will enter into a license agreement for the payment of future royalties for boats sold by MasterCraft using the licensed technology.
MasterCraft said in a statement: “MasterCraft has steadfastly denied that its wakesurf technology embodied in the MasterCraft Gen 2 and NXT Surf Systems infringe any claims of Malibu’s patents, but the continuing burden and expense of litigation made settlement the economically prudent move.
“Now the company can focus on continuing the creation, enhancement and sale of its industry award-winning products and the future growth of the company.”
MasterCraft CEO Terry McNew said: “While we felt strongly about our position in this dispute, we know there is significant cost and uncertainty associated with the judicial process, and as a result, we view this settlement as a positive outcome for MasterCraft.
“We are satisfied that the terms of the settlement are reasonable for both MasterCraft and Malibu, and we look forward to MasterCraft’s continued role in advancing our market segment for the benefit of both MasterCraft and the entire industry.”
Malibu CEO Jack Springer said: “We are pleased to conclude the litigation between our two industry leading companies.
“While both companies were steadfast in their position, we are satisfied that we have reached a reasonable outcome …
“As we continue to innovate and to build our valuable patent portfolio, we will continue to be aggressively focused on ensuring that industry participants recognize the value of our innovation and subsequent patents.”