Biolase (NSDQ:BIOL) said late last month that it reached a settlement deal with CAO Group to end a patent infringement suit the companies were engaged in over laser technologies, according to an SEC filing.
Irvine, Calif.-based Biolase said that CAO agreed to dismiss with prejudice lawsuits it filed against Biolase in April 2012 and again in January 2018 which alleged that Biolase’s Ezlase dental laser and diode laser infringed on patents owned by CAO.
As part of the settlement, CAO granted Biolase and its affiliates a non-exclusive, non-transferable and royalty-free license to the aforementioned patents for use in their products and agreed not to sue the company or affiliates over the use of the technology, according to an SEC filing.
Biolase said that it agreed to pay CAO $500,000 in cash and to issue 500,000 restricted shares of common stock to the company.
The deal also included a payment from Biolase to be delivered within 30 days of December 31, 2021 in an amount in cash equal to the difference, if positive, between $1 million and the value of the stock consideration it provided, which become vested and transferable on the same date, according to the SEC filing.