MIPS & POC Sweden Have Reached A Settlement And Will Strengthen Their Cooperation

On November 15, 2017 MIPS AB (”MIPS”) disclosed that the company had been granted a preliminary injunction in Germany in order to prevent an infringement by POC Sweden AB (”POC”) of one of MIPS' patents. Following POC’s opposition the preliminary injunction was withdrawn on 16th March and POC filed a counter claim against MIPS.

MIPS and POC have today agreed on a settlement with respect to the ongoing legal proceedings. The settlement agreement does not include any obligation for any party to reimburse the other party for the costs incurred in relation to the legal proceedings. The companies intend to jointly develop safer helmets combining POC and MIPS’ strengths in technological innovation, style and quality. The cooperation is estimated to have a limited impact on the 2018 net sales of MIPS.

MIPS has been granted an ex parte preliminary injunction in Germany to restrain infringement of MIPS’ patent EP (DE) 2 440 082 by POC Sweden AB through its sales in Germany of products incorporating the Shearing Pad INside, or “SPIN”, claiming to be a rotational impact protection system.

The order was granted by the court ex parte. This means that there was no hearing, POC was not given the opportunity to make submissions and there was no detailed argumentation relating to infringement and validity. MIPS is in the process of executing the order against POC. POC is permitted to appeal against the order.

POC is currently a customer to MIPS but represents a minor portion (less than 1% of net sales) of MIPS’ total sales.