SUNNYVALE, Calif.—Palm Inc. said it will pay Xerox Corp. $22.5 million to settle a 9-year-old patent infringement lawsuit over handwriting-recognition technology.
Xerox filed the lawsuit in 1997, claiming Palm’s “Graffiti” software infringed on Xerox’s “Unistrokes” patent, which covers one-stroke symbols. Xerox won an initial judgment in 2001, but the decision was reversed on appeal in 2004.
A second appeals court overturned the 2001 judgment earlier this month, re-igniting settlement talks. Under terms of the deal, Palm will receive licenses to use Unistrokes and two other Xerox patents, and the companies agreed to a seven-year moratorium on litigation.
Shares of Palm dipped minimally on the news, losing 22 cents to $18.10 by mid-day. Shares of Xerox held at $13.29.
