MasterCraft to make a one-time payout to Malibu
Loudon, Tenn based Malibu Boats, LLC, and Vonore, TN-based MasterCraft Boat Company, LLC have settled their high profile patent infringement lawsuit.
Under the terms of the settlement, MasterCraft will make a one-time payment to Malibu Boats and will enter into a license agreement for the payment of future royalties for boats sold by MasterCraft using the licensed technology.
“We are pleased to conclude the litigation between our two industry-leading companies,” said Jack Springer, Malibu CEO. “While both companies were steadfast in their position, we are satisfied that we have reached a reasonable outcome. This is a positive development for us and allows Malibu to focus on continuing growth and improvement.”
MasterCraft has vigorously denied that its wakesurf technology found in its Gen 2 and NXT Surf Systems infringe Malibu’s patents, but the “continuing burden and expense of litigation” made settlement economically prudent, according to the company. “We are pleased to have this dispute behind us and look forward to building on MasterCraft’s legacy of award-winning products,” said MasterCraft’s CEO, Terry McNew. “ While we felt strongly about our position in this dispute, we know there is significant cost and uncertainty associated with the judicial process and as a result, we view this settlement as a positive outcome for MasterCraft.”