Shares In Ocado Group climbed over 10% this morning following the news that it had secured a £200m settlement from Norwegian company AutoStore after a three-year legal battle over ‘robot’ patents.
Both AutoStore and Ocado license their hi-tech warehouse technology to retailers around the world, which had led to a legal battle over intellectual property rights.
Under a deal announced over the weekend, all the patent litigation claims will now be withdrawn globally, with both firms able to continue using and marketing their own existing products without challenge.
AutoStore will pay the £200m to Ocado in instalments over a two-year period. It did not give a specific reason for the agreed payment.
A statement noted that the agreement gives access to part of each party’s patent portfolio for them to use or develop their own products. However, it does not allow for collaboration, technology support between the companies, or access to actual products.
Tim Steiner, Chief Executive Officer of Ocado, commented: “I am pleased that we have worked together to resolve our differences and can now continue to focus on what we do best – innovating, developing and enabling partners to access world-beating technology.”
Last week, Ocado revealed that it had returned to underlying profit in its first half, helped by increased demand for its retail and technology services.
NAM Implications:
- The legal undergrowth appears to have been cleared.
- Allowing relative freedom of movement to each party in optimising their own intellectual property…
- …as they enter into ‘level playing field competition’.
- (all the more reason for Ocado to consider selling off Retail in order to focus on Tech Services?)
