Celgard parent Polypore International has reached a settlement in a patent infringement case against rival Sumitomo Corp of Japan.
Charlotte, USA-based Polypore has licensed Sumitomo to use its battery-separator coating technology in separators Sumitomo produces for companies such as Panasonic. The company says the settlement “ends all outstanding worldwide litigation between the two companies” over what Polypore contends was Sumitomo’s pirating of its intellectual property.
Polypore said the “financial terms of the Agreement include an up-front payment to Polypore as well as recurring royalties.”
“This agreement confirms the integrity of our intellectual property around ceramic coating of separators for lithium-ion batteries,” says Polypore CEO Robert Toth. “In addition to the financial consideration of the licensing arrangement, we are pleased that this agreement establishes the opportunity for Polypore and Sumitomo to work together to address growing market needs, which we expect to benefit both companies.”
In February 2013, Celgard filed a suit in US District Court. It asked the judge to stop Sumitomo from manufacturing the challenged battery-separator parts. It also asked the judge to order payment of royalty fees and unspecified damages.
The licensing agreement with Sumitomo could mean that Tesla Motors will be using Polypore technology in its electric cars, adding strength to Polypore’s automotive position currently thought to be buttressed by placement on the Nissan Leaf.
In a report, Stifel Nicolaus analyst Jeffery Osborne called it good news for Polypore. “We believe Tesla … is one of Panasonic’s largest customers using the format of battery mentioned in the filing,” Osborne wrote. “While we have no way of quantifying the impact of this agreement, we view it as a long term positive for the company as they maintain their leadership in the market.”
