Kodak, FileNet settle lawsuit

Eastman Kodak Co. and FileNet Corp. announced that they have settled a 7-year-old lawsuit for almost US$4 million.

The suit originated when the now-defunct Wang Laboratories Inc. sued FileNet, a document and management software company, in October 1994 for alleged patent infringement.

The lawsuit centered on Billerica, Mass.-based Wang's image transfer technology, according to Costa Mesa, Calif.-based FileNet spokesman Tom Hennessey.

Kodak bought Wang's software unit in January 1997 and inherited the lawsuit. The original Wang software unit has since been sold; it is now Eastman Software and is still located in Billerica.

In a statement, FileNet said it would take a one-time write-off of about $4 million for the settlement and other associated fees. Hennessey said the related costs, mostly legal fees, were not a significant amount of the $4 million.

Hennessey said more details on the cost will be available in FileNet's quarterly financial statement, which is due to be released tomorrow.

"We believe this settlement is in the best interest of FileNet," the announcement said. "This settlement between FileNet and Kodak does not impact our customers or current products in any way, allowing us to focus our time and resources on continuing to build the business. This also paves the way for a potentially more positive and beneficial relationship between FileNet and Kodak."

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