Heelys, Inc. has agreed to settle its patent and trademark infringement dispute with Elan-Polo, Inc. for $1.4 million.
Heelys also announced it has signed a strategic licensing agreement with Elan-Polo. Under terms of the agreement, Heelys has granted Elan-Polo the rights to manufacture and sell a certain style of shoe skates with non-removable wheels both in the heel and in front of the heel to an approved list of retailers in the United State and Canada, in return for royalty payments. The licensing agreement runs until March 10, 2011.
“This licensing agreement gives us better control over the marketplace by providing us with a strategic vehicle to access and monitor the distribution of entry-level products, while at the same time maintaining the integrity and premium positioning of the Heelys brand,” said Parks. “We look forward to a mutually beneficial relationship between our two companies.”