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Impinj Announces Successful Settlement of Patent Litigation

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Impinj, Inc. (NASDAQ: PI) settles patent disputes with NXP Semiconductors N.V., receiving an up-front payment and annual license fee. The agreement ends all legal proceedings, releases liability for past patent infringement, and licenses patents to each other. Resellers and end users are also released from infringement claims. Impinj's CEO emphasizes the importance of safeguarding their patents and promoting innovation.
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From a legal standpoint, the settlement of patent disputes between Impinj, Inc. and NXP Semiconductors carries significant implications. Firstly, the termination of all pending legal proceedings reduces the immediate legal expenses and potential liabilities for both companies. Secondly, the mutual licensing agreement suggests that both parties recognize the validity and value of each other's intellectual property, which can foster a more collaborative industry environment. The release of liability for past patent infringement can also be seen as a strategic move to avoid the unpredictability of jury verdicts and the high costs associated with prolonged litigation.

Moreover, the licensing deal provides a steady stream of revenue for Impinj in the form of an annual license fee. This could enhance the company's financial stability and predictability of earnings. It's important to note that such agreements can set industry standards for technology usage and patent valuations. The fact that Impinj has prevailed in multiple trials prior to this settlement might indicate a strong patent portfolio, which could deter future litigation and strengthen its market position.

Analyzing the financial impact, the one-time payment received by Impinj as part of the settlement likely represents a positive cash infusion that could be reflected in the company's short-term financial reporting. This inflow, along with the annual license fee, will contribute to the company's revenue stream, potentially improving its profit margins and earnings per share. Investors often view such settlements favorably, as they eliminate uncertainty and provide financial benefits.

However, it's crucial to evaluate how these financial gains compare to the potential revenue that could have been generated through continued litigation victories. Additionally, the market will be watching how Impinj plans to reinvest the settlement funds into further innovation or debt reduction. The market reaction to this news will be a key indicator of how investors are valuing the settlement terms and the future prospects of the company's patent portfolio.

The settlement between Impinj and NXP Semiconductors has broader implications for the RAIN RFID and Internet of Things (IoT) sectors. The resolution of this dispute may encourage other industry players to seek similar agreements, which could accelerate the consolidation of patent portfolios and standardize technology platforms. Such standardization can lead to increased adoption of RAIN RFID technology, as end users benefit from reduced risk of infringement litigation.

Furthermore, the explicit mention of resellers and end users being released from infringement claims for past sales or use of UHF RFID products could improve market sentiment towards both companies' products. This aspect of the settlement may increase market penetration and customer loyalty, as it reduces the legal risk for the supply chain and end users involved with these technologies. Therefore, the settlement could have a positive impact on the overall growth trajectory of the RAIN RFID market.

Company receives one-time payment and annual license fee

SEATTLE--(BUSINESS WIRE)-- Impinj, Inc. (NASDAQ: PI), a leading RAIN RFID provider and Internet of Things pioneer, today announced a successful settlement of its patent disputes with NXP Semiconductors N.V. As outlined in an 8-K filed with the U.S. Securities and Exchange Commission today, the agreement terminates all pending legal proceedings, releases each party from liability for past patent infringement, and licenses each party’s patents to the other. It also releases resellers and end users from infringement claims for the sale or use of the parties’ UHF RFID products before the date of the agreement.

The agreement, which concludes a multi-year patent dispute during which Impinj prevailed in multiple trials, includes both an up-front payment and a yearly license fee to Impinj. “Impinj is passionately inventive,” said Chris Diorio, Impinj co-founder and CEO. “Our more-than 305 issued and allowed RAIN RFID patents are the hard-earned fruits of that passion and reflect significant investment, dedication and sheer hard work. We are committed to safeguarding those patented inventions, ensuring free and fair competition and innovating solutions for our enterprise end users. I believe this settlement advances all three objectives and am pleased with the final outcome.”

About Impinj

Impinj (NASDAQ: PI) helps businesses and people analyze, optimize, and innovate by wirelessly connecting billions of everyday things — such as apparel, automobile parts, luggage, and shipments — to the Internet. The Impinj platform uses RAIN RFID to deliver timely data about these everyday things to business and consumer applications, enabling a boundless Internet of Things. www.impinj.com

For more information, contact:

Investor Relations

Andy Cobb, CFA

Vice President, Strategic Finance

+1 206-315-4470

ir@impinj.com

Media Relations

Jill West

Vice President, Strategic Communications

+1 206-834-1110

jwest@impinj.com

Source: Impinj, Inc.

FAQ

What is the ticker symbol for Impinj, Inc. mentioned in the press release?

The ticker symbol for Impinj, Inc. is PI.

What did Impinj receive as part of the settlement with NXP Semiconductors N.V.?

Impinj received an up-front payment and an annual license fee as part of the settlement.

What does the agreement between Impinj and NXP Semiconductors N.V. entail?

The agreement terminates all legal proceedings, releases liability for past patent infringement, and licenses patents to each other.

Why did Impinj CEO emphasize the importance of safeguarding their patents?

The CEO emphasized the importance of safeguarding their patents to ensure free and fair competition and promote innovation.

How many RAIN RFID patents does Impinj hold?

Impinj holds more than 305 issued and allowed RAIN RFID patents.

Impinj, Inc.

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