APC, Coppola Agreement On UPS Technology Patent Rights
American Power Conversion (APC, West Kingston, RI) announced its agreement with Anthony F. Coppola to license worldwide patent rights for uninterruptible power supply technology. In exchange for the patent license, APC will pay Coppola a lump sum of $17.0 million in cash. APC and Coppola have settled and agreed to dismiss the patent infringement lawsuit filed earlier by Coppola.APC anticipates that the patent license will be a long-term asset on the company's balance sheet at a value to be determined by an independent economic analysis. In the event that the license fee exceeds the value assigned to the license, the difference will be recognized in the company's income statement for the third quarter of 2000 as a special charge to earnings. The capitalized value of the license is expected to be amortized over the future economic life of the underlying technology.