By ADAM SCHUPAKSenior WriterGolf equipment manufacturer Bridgestone Sports Co. Ltd. reached a settlement and patent license agreement with the Acushnet Co., maker of Titleist and Pinnacle balls among other golf products. The resolution of a 2 1/2-year ball patent infringement suit awards Bridgestone royalties that go into effect immediately and a one-time licensing fee.
Under terms of the agreement, Acushnet will pay Bridgestone ongoing royalties for use of an undisclosed number of Bridgestone patents. The parties also have agreed to a “non-royalty bearing cross-license” of other patents held by each company, according to a statement released by Bridgestone.
“This agreement demonstrates the value of our technology and our intellectual property,” said Bridgestone president Hisashi Kawano.
Bridgestone filed its suit March 7, 2005, in U.S. District Court in Delaware after failed negotiations with Acushnet. The complaint alleged Acushnet of willful infringement of 10 U.S. patents pertaining to multi-piece, solid core golf ball technology.
According to the original suit, the Acushnet balls in question were: Titleist Pro V1, Pro V1x, NXT, NXT Tour, DT SoLo and Pinnacle Exception. However, it was unclear how many patents will be licensed or which golf balls will be affected as a result of the settlement; officials at both companies declined to provide details of the resolution.
Terms of the agreement are confidential, making it difficult to determine its impact on the two companies. But the court of public opinion likely will conclude the settlement is a blow for Acushnet, considering it gives the appearance that Acushnet’s dominant brands needed to borrow technology from a rival to create some of its best-selling products.
The two parties were scheduled to go to trial June 14, according to a source familiar with the litigation. A preliminary settlement was reached on the eve of the trial, but mediation wasn’t finalized until Sept. 28.
The agreement resolves all litigation in the U.S. between the companies. A related suit in Japan was not part of this settlement and remains pending.
Acushnet also still is involved in another suit with Callaway Golf, which maintains the Fairhaven, Mass.-based company infringed upon its ball patents. That suit was filed Feb. 9, 2006.
Posted: 10/3/2007
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