Dexcom (NSDQ:DXCM) said today that it agreed to settle its patent infringement war with Abbott Diabetes Care (NYSE:ABT) in a cross-licensing deal that doesn’t involve any royalties.
The settlement puts to rest "all pending patent infringement legal proceedings" brought by Abbott against DexCom, according to a press release.
DexCom said it received a limited license to the patents Abbott alleged in the infringement cases, and granted Abbott a limited license to certain patents filed before Jan. 1, 2005. The companies also agreed not to sue each other for patent infringement "based on certain of their respective continuous glucose monitoring products" or to challenge any patent or patent application until March 31, 2021.
"The cross-license and mutual covenant not to sue granted to each party do not apply to the type of sensor technology used by the other party," according to a regulatory filing.
If either company is sold, it will owe a continuation fee of $25 million to the other, according to the filing.