AppDynamics, CA Inc. Settle Two-Year-Old Patent Dispute

By Chelsey Dulaney 

AppDynamics Inc. and CA Inc. said Monday that they have agreed to settle a patent dispute that began in 2013 and spawned a series of lawsuits.

AppDynamics's software monitors how applications are performing in order to help companies avoid bottlenecks. Its founder and chief executive, Jyoti Bansal, along with other AppDynamics executives, previously worked at CA.

In April 2013, CA sued AppDynamics for patent infringement in federal court in New York. The suit set off a slew of claims and counterclaims involving when portions of the AppDynamics source code were written.

CA alleged that AppDynamics misappropriated trade secrets, among other things, which AppDynamics disputed. Last year, AppDynamics sought a declaratory judgment from a California court stating that AppDynamics and its executives didn't misappropriate trade secrets from CA and didn't use its source code.

Monday's settlement resolves all litigation.

CA said the settlement includes "substantial licensing payments from AppDynamics." AppDynamics said that it paid a "modest fixed payment" and obtained an irrevocable license to the patents involved in the case and other related foreign or domestic patents.

Write to Chelsey Dulaney at [e-mail]

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