ITUS Corporation (OTCQB:ITUS) said it has settled its lawsuit against AU Optronics and will receive a payout of $9 million in cash.
The deal also includes the termination of AU's rights to ITUS's patented Nano Field Emission Display technology, and the transfer of its electrophoretic display (EPD) patent portfolio to AU.
"This settlement accomplishes 2 very important goals for ITUS: it provides consideration for our EPD patents; and gives us the right to develop our nFED technology, which is now completely unencumbered," said president and chief executive officer, Robert Berman.
"The combination of our strong cash position, together with the significant potential from the patented technologies that we own or control, positions the company for continued growth in 2015 and beyond."
The settlement resolves a contract dispute between the two parties stemming from two development and license agreements signed back in May 2011. ITUS terminated these arrangements in January 2013, citing "numerous alleged material and continual breaches" by AU Optronics.
ITUS then filed a lawsuit claiming breach of contract and other charges against AU, and a trial, which has now been dismissed, began on November 10, 2014.
ITUS, which officially changed its name last September from CopyTele to better align with its new business strategy, has 10 patent portfolios in areas such as encrypted cellular communications, key-based web conferencing encryption and other technology fields, and makes money off its patents via lawsuits or license agreements.