CPI Card Group, a provider of financial and EMV chip card production and related services, said it reached a settlement with Gemalto S.A. to resolve the two patent litigation suits pending in the US District Court for the District of Colorado.
“Under the terms of the settlement, CPI has agreed to make a one-time payment of $750,000 in the fourth quarter of 2017,” said CPI.
“The settlement will result in the dismissal of both lawsuits with prejudice.
“The settlement agreement also includes a mutual covenant not to sue for a period of 18 months.
“CPI Card Group has denied any wrongdoing in this matter, but is settling to avoid the uncertainty, distraction, and expense of protracted litigation.”
CPI Card Group CEO Steve Montross, said: “While we were firmly committed to our defense of the claims raised in the suits, we are pleased to end these frivolous suits for a fraction of our legal expenses.
“We have always maintained that we do not infringe on intellectual property rights of others, and this settlement for an amount less than reserved legal expenses shows the strength of our position.
“We believe this settlement will allow us to now focus all our efforts on providing high quality products and execution to our customers.”