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(Alliance News) - Cap-XX Ltd on Thursday said it has signed a settlement agreement with Tesla Inc, ending its patent infringement litigation Maxwell Technologies Inc.
The Sydney-based company, which makes supercapacitors for portable electronic devices, said that the agreement does not involve payments to Tesla which it "considers to be material".
The confidential settlement closes a lengthy legal battle between Cap-XX and Maxwell Technologies, a California-based maker of energy storage and power delivery products which Tesla acquired in May, 2019 for USD218 million.
In September that year, Cap-XX filed a complaint alleging that Maxwell had both directly and indirectly infringed on its patents for several capacitor products.
At the subsequent trial in the Delaware District Court, a jury found that Cap-XX's patents were invalid. This decision nullified the accusations against Maxwell, which was therefore not liable to pay any damages or licence fees.
Following the court decision, Cap-XX shares fell 55% to 0.77p on the morning of December 18 and continued a downward trajectory. On late Thursday morning, Cap-XX shares were trading 73% higher at 0.32 pence, compared to Wednesday's close. The company announced in late January that it had filed a notice of appeal to the Federal Circuit Court of Appeals.
On February 19, however, Cap-XX announced that it had decided to take no further action with regard to the case, resulting in the appeal's dismissal.
"The decision follows the conclusion of a case review by CAP-XX with its lawyers, which considered the legal fees to present the appeal and the probability of success," the company explained.
By Emma Curzon, Alliance News reporter
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