Honeywell Settles Patent Dispute With BorgWarner For $33 Million

   DOW JONES NEWSWIRES 
 

Honeywell International Inc.'s (HON) Turbo Technologies unit said it reached an agreement to pay $32.5 million to its counterpart at BorgWarner Inc. (BWA) to end a four-year-old patent dispute over cast titanium compressor wheels used in vehicle turbochargers.

Honeywell on Monday said it will receive a paid-up license to BorgWarner's asserted patents for the one-time payment. Other terms of the deal weren't disclosed.

BorgWarner didn't immediately return calls for comment.

Honeywell said the U.S. Patent Office had reopened its examination of the three disputed BorgWarner patents for the compressor wheels, which are used to make vehicles more fuel efficient, and preliminarily found them invalid.

BorgWarner had sought damages of more than $100 million and asserted the award should be tripled for willful infringement.

Big industrial companies enjoyed the fruits of economic improvement last year but still face rising material and fuel costs. Honeywell, which makes aerospace, building control and safety products, has benefited of late from a broad-based increase in demand, while BorgWarner most recently posted expectations-beating results largely thanks to foreign currency exchange rates and contributions from recent acquisitions.

Honeywell shares were recently off 5 cents at $60.46, in line with the broader market. The stock has risen by a third over the past 12 months. BorgWarner was up 19 cents at $74.01 and has gained 89% over the past year.

-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; [e-mail]