Cognos To Pay $24M To Settle Business Objects Suit

Cognos Business Objects

The payment releases Cognos from "any alleged infringement of this patent" and initiates a five-year moratorium on patent litigation between the two companies, both of which develop and sell business intelligence and analytics software.

In May 2000, Business Objects alleged that Cognos Impromptu infringed on a Business Objects patent. Last September, the San Francisco district court ordered that the case proceed to trial, denying Cognos' motion for summary judgement.

Under terms of the agreement, Cognos will pay its rival $10 million up front and then $1.75 million per quarter for two years, according to a statement Cognos released Tuesday morning.

"We stand firm in our position that the Business Objects patent is invalid and unenforceable against Cognos. However, despite our strong views, we felt that the opportunity to settle was best for our business during a time of great business momentum and opportunity," Cognos CEO Ron Zambonini said in a prepared statement.

San Jose, Calif.-based Business Objects won a similar settlement over Brio in September 1999.