Finjan Inc. and Blue Coat Systems Inc. have called off their second patent infringement trial over cybersecurity technology.
The parties had been scheduled to start trial Monday. But instead Finjan and Blue Coat’s parent, Symantec Corp., entered into a confidential term sheet, Finjan stated in a Monday press release. “Finjan expects that a definitive agreement will be finalized by no later than Feb. 28, 2018,” the release states.
Finjan’s stock popped 36 percent on the news Monday.
From the surface it does not appear as if the settlement covers a previous trial that resulted in a $39.5 verdict against Blue Coat. The Federal Circuit carved $7.75 million out of that award last month, and ordered that an additional $24 million be apportioned in a new trial or possibly eliminated altogether. The parties still have 10 days to petition for rehearing of the Federal Circuit decision.
In the meantime Finjan was seeking $46 million in the latest trial, alleging that new Blue Coat products infringed two Finjan patents, including one that was issue in the previous trial.
Finjan suggested in its press release that it will now be setting its sights elsewhere. The company noted that it has pending infringement actions against Palo Alto Networks, Cisco Systems Inc., Juniper Networks and several others.
Finjan is represented by a Kramer Levin Naftalis & Frankel trial team led by partners Paul Andre, Lisa Kobialka and James Hannah. Blue Coat’s trial team included Durie Tangri partner Daralyn Durie, Morrison & Foerster partner Stefani Shanberg and Quinn Emanuel Urquhart & Sullivan’s Nathan Hamstra.