Sunday, March 10, 2013
Nexxus Lighting and Philips settle patent litigation, Nexxus completes $6 million investment
Nexxus Lighting and Royal Philips Electronics have settled patent litigation brought by Philips. Philips has granted Nexxus an ongoing, royalty-bearing license to LED luminaire and retrofit bulb technologies. Nexxus also finalized a $6 million investment by Aston Capital.
Nexxus Lighting, Inc. has announced a settlement agreement ending the pending patent litigation brought by Royal Philips Electronics (aex:PHI). In a separate announcement, Nexxus stated that it had completed the previously announced $6 million equity investment by Aston Capital, LLC, a private investment company. Aston now owns 73% of Nexxus’ common stock.
In connection with the settlement and patent license agreement, Philips will grant Nexxus Lighting an ongoing, royalty-bearing license to the comprehensive portfolio of patented LED technologies and solutions offered under Philips' LED luminaire and retrofit bulb licensing program. The license allows Nexxus to continue to manufacture and sell LED-based lighting products, including the Array brand of LED replacement light bulbs.
Nexxus will also pay Philips a one-time, lump-sum royalty fee to address past sales.
Both parties will dismiss the lawsuit Philips initiated and presently pending in Massachusetts federal court.
"The opportunity for creating, developing and selling creative new LED lighting systems is expanding rapidly and we believe that combining access to the Philips portfolio of intellectual property with our own patented technology will give Nexxus Lighting a tremendous platform from which to penetrate the growing lighting market," stated Mike Bauer, president and CEO of Nexxus Lighting. "We are pleased we could come to mutually agreeable terms and can now refocus our business on the large growth opportunities we see for LED lighting."