eMagin Terminates License Agreements, Settles Litigation with Global OLED Technology, LLC

eMagin Corporation announced that it has entered into a settlement agreement with Global OLED Technology, LLC relating to two patent license agreements.

Pursuant to the settlement agreement, the parties agreed to terminate the patent license agreements entered into in 1998 and 1999, respectively, between FED Corporation (predecessor to eMagin Corporation) and Eastman Kodak Company (predecessor to Global OLED Technology, LLC), in exchange for mutual releases and the payment by eMagin of a one-time, undisclosed settlement amount, substantially all of which was recorded as an expense by eMagin in the fourth quarter of 2013 as a reasonable good faith estimate.

In addition, the parties agreed to dismiss with prejudice the lawsuit commenced by Global OLED Technology, LLC in New York state court in January 2014. The balance of the terms of the settlement agreement remain confidential.

“We are pleased to have amicably resolved all matters relating to the license agreements with Global OLED Technology,” said Andrew Sculley, president and CEO. “This final resolution extinguishes any apparent financial or legal uncertainty that may have arisen under the license agreements. Furthermore, it allows us to continue to execute on our core business strategies without any contractual royalty obligations on the sale of eMagin’s current product offering, which does not incorporate any GOT intellectual property.”