UTStarcom, Starent Settle Legal Spat
UTStarcom and Starent Networks have agreed to settle all legal disputes between the two infrastructure companies.
Under the terms of the settlement, Starent will make a one-time $3.5 million payment to UTStarcom in exchange for a perpetual royalty-free license to UTStarcom patents. Included in the settlement is the dismissal of two pending litigations in Illinois and California U.S. district courts.
The settlement comes shortly after Starent announced it was being acquired by Cisco for $2.9 billion, most of which will be paid in cash. Starent specializes in mobile Internet infrastructure equipment that is key to supporting data-intensive smartphones.
The acquisition has already been approved by the boards of both companies and should close within the first half of 2010 pending regulatory approval.
UTStarcom's specialties include IPTV infrastructure, CDMA/GSM wireless network equipment and next-generation networks.