Amer Group Plc has recognized a gain of $23 million following the amicable settlement of a patent litigation case in the U.S. The Life Fitness division of Brunswick Corporation will pay the settlement amount in two annual installments in 2003 and 2004, in return for a sublicense of the patent rights held by Precor, a part of Amer Group, to use technology for elliptical fitness equipment.
The gain will be included in Amers interim results for the period January-September 2003.
Under the terms of the settlement, Brunswick shall make a payment to cover past claims in the amount of $25 million, of which $2 million will be paid to the individual inventor of the technology. In addition, Precor will receive royalties on all future sales of products by Life Fitness which are covered by the patent.