SWM And Delfort Resolve IP Dispute
Source from: Tobacco Reporter 10/28/2011

SWM and Delfortgroup have resolved their intellectual property dispute over lower-ignition propensity (LIP) cigarette paper with the signing of a worldwide license agreement and settlement of all litigation and administrative proceedings pending between them.
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The resolution of these disputes was viewed by both parties as a positive development for the tobacco industry and its ability to have secure access to a wide-range of lower-ignition propensity cigarette paper products.
The agreement announced is a non-exclusive patent license agreement regarding the worldwide production and sale of print-banded LIP cigarette papers, that would be encompassed by SWM's patent portfolio.
The agreement is effective immediately and will continue concurrent with the life of SWM's licensed patents, which expire between 2014 and 2023.
As a result of entry into this license agreement, SWM and Delfortgroup have agreed to voluntarily settle all current litigation and administrative matters pending between them in the United States and Europe concerning SWM's LIP patents.
The license agreement provides for a guaranteed annual minimum royalty of $4 million for each of the first five calendar years commencing in 2011, and running royalties as well as an amount to settle any claims related to past sales.
"We're pleased to reach an agreement and to see continued recognition of the value of our patent portfolio, particularly as it relates to product and process solutions for lower ignition propensity cigarette applications," said SWM chief executive officer and chairman of the board Frédéric Villoutreix.
"This agreement is a landmark for SWM and Delfortgroup, and allows both organizations to best meet our tobacco customers' worldwide needs."
"Delfortgroup is further pleased that we are able to continue providing our customers with a choice of LIP technologies and this agreement enables us to focus our energies on servicing our industry as it deserves," said Delfortgroup chief executive officer Martin Zahlbruckner. Enditem