Wireless LAN vendor Aruba Networks Inc said it will pay Motorola Inc $19.8 million to settle two-year-long patent disputes.
The disputes involved patents owned by both parties and the settlement includes a cross-licensing agreement, the companies said in a joint statement.
Aruba will account for the settlement payment as a one-time expense for the fiscal first quarter ended Oct. 31, the company said in a filing.
The legal battle dates back to August 2007, when Motorola's subsidiary companies Symbol Technologies and Wireless Valley Communications filed a lawsuit against Aruba on concerns that Aruba had infringed patents related to wireless local area network (WLAN) communication technologies.
In September 2008, Aruba filed a countersuit against Motorola and its subsidiaries, alleging infringement of two patents related to managing wireless computer networks and network security.
Additionally, we are actively exploring technical and business opportunities of mutual interest associated with the all-wireless enterprise, Gene Delaney, president of Motorola's enterprise mobility solutions business, said.
In August, Aruba had expressed concerns about increasing expenses related to the lawsuit.
Shares of Aruba closed at $8.44 Thursday on Nasdaq, while those of Motorola closed at $9.31 on the New York Stock Exchange.
(Reporting by Shrutika Verma in Bangalore; Editing by Maju Samuel)