Xircom Settles with 3Com to Tune of $15 Million

3Com and Intel subsidiary Xircom
called it quits Tuesday in their long-running patent battle over modem
cards, with 3Com winning a $15 million license payment.

The two companies have been duking it out in the U.S. District Court for
the District of Utah, and in July 3Com successfully won an injunction
against Xircom, effectively halting production and sale of 26 of Xircom’s
products for the duration of the court battle.

On Tuesday, the firms agreed to settle the one patent infringement suit
brought by 3Com against Xircom, and the two suits brought by Xircom against
3Com. Under the terms of the settlement, Xircom will pay 3Com $15 million
to cross-license the patents. Further details of the settlement were not
disclosed.

3Com initially sued Xircom for patent infringement on February 8, 2001,
alleging the company infringes claim 29 of U.S. Patent #6,146,209. Intel
acquired Xircom later that same year.

After a lengthy legal process that included an extensive discovery period,
multiple expert witnesses and many hearings, Judge Tena Campbell issued a
40-page report that said 3Com was likely to prevail on its claim.

On March 22, 2002, the judge granted the company’s motion for a preliminary
injunction.

This is not the first time 3Com and Xircom have gone toe to toe over
patents.

Back in May 2000, 3Com accused Xircom of infringement on patents for
electrical connectors and current surge-protectors for modems. Those papers
were served to Xircom in August. Xircom filed a counter suit against 3Com a
month later saying its RealPort PC card design was copied by 3Com in 3Com’s
Type III PC card design.