SAP settles patent lawsuit with supply chain management vendor

Courtney Bjorlin, News Editor

SAP has agreed to pay supply chain management (SCM) software vendor i2 Technologies Inc. $83.3 million to settle a patent infringement lawsuit, according to documents from the SEC.

Under the agreement, SAP will pay i2 Technologies a one-time $83 million cash payment, and each party will receive license to certain patents, which weren't named.

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The lawsuit was filed two years ago by Dallas-based i2. It alleged that SAP infringed on seven of i2's software patents, ranging from a model for process planning to tools for negotiating and tracking the sale of goods. A settlement was reached on June 23 and announced today.

SAP's comment on the lawsuit included only language used in the SEC filing.

Many of i2 Technologies' customers run SAP ERP software and use i2's SCM software alongside it.

The company expects to receive the money from SAP in the third quarter of 2008.

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