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June 28, 2006

Unistroke Payoff

Palm has agreed to pay Xerox $22.5 million to settle its long-running unistroke patent infringement suit.

In return, Palm receives licenses to three Xerox patents that enable Palm to again use its "Graffiti" software with impunity (at least from Xerox). The agreement also creates a seven-year "patent peace:" a mutual covenant not to assert patents against each other.

Earlier this month, the CAFC had resuscitated 5,596,656, the unistroke patent, by altering the claim construction. Facing stiffer odds of prevailing, Palm wisely opened its wallet.

Palm entered the PDA market in 1996 with its easy-to-learn single-stroke handwriting recognition software called Graffiti. Xerox sued for patent infringement in 1997. To avoid willful infringement, Palm switched to another technology, called Jot.

Posted by Patent Hawk at June 28, 2006 8:44 AM | Litigation