HP, Xerox settle patent infringement lawsuits

After more than a year of bitter legal disputes, Hewlett-Packard and Xerox finally agreed to settle the various patent-infringement lawsuits they had filed against each other. Xerox had accused HP of illegal use of its inkjet, color balancing and resolution enhancement technology patents. HP had sued Xerox for allegedly infringing on its touch-screen controls, inkjet and image enhancement technologies.

In separate statements, HP and Xerox said they had decided to settle the cases to avoid the mounting legal expenses, and reduce the unproductive time and distractions the lengthy legal battles were inflicting on management. Analysts said circumstances dictated that the legal issues be resolved quickly. HP’s new management team is trying to focus on re-invigorating the company’s growth and profitability, while Xerox is once again trying to make a move in mass markets such as ink jet printers and other consumer and small business segments.

The agreement means all outstanding litigation, including six patent suits filed between May 1998 and June 1999, have been dismissed.