Business Objects has announced the successful resolution of its patent infringement lawsuit against Cognos Incorporated regarding Business Objects` United States patent number 5 555 403 entitled "Relational Database Access System Using Semantically Dynamic Objects".
Under the terms of the agreement, Cognos will license the rights to the patent from Business Objects for $24 million. This licence will cover both past and future use of Business Objects technology. The payment, excluding transaction costs, will consist of a $10 million payment by 10 June 2002, and quarterly payments of $1.75 million over the next two years.
As part of the agreement, Cognos will place the notice "US Pat No 5 555 403" on each copy of its Impromptu product and subsequent releases manufactured after 1 July 2002.
"This is an important day for Business Objects and our stakeholders. Once again the value of our patented technology has been recognised. Contrary to Cognos` prior claims, we believe that this patent is valid and enforceable," said Bernard Liautaud, chief executive officer of Business Objects.
"In 1990, Business Objects invented a new query paradigm, using a semantic layer that allowed business users to access relational databases by insulating them from the complexity of database structures. This invention has been key to the growth and success of Business Objects."
Liautaud continued: "In fact, we believe it changed the business intelligence industry altogether. From the time of our invention, business people in thousands of global corporations have been able to access business information in an easier way than ever before. Because of its importance, we succeeded in patenting this technology as US patent 5 555 403. We believe it is our duty to enforce our intellectual property rights."
This is the second time Business Objects has successfully enforced patent number 5 555 403. In January 1997, the company filed a patent infringement lawsuit against Brio Software, another competing BI vendor. A settlement between the two companies was announced on 13 September 1999, whereby Brio agreed to pay Business Objects $10 million.
Liautaud concluded: "Business Objects has a long history of technical innovation, and this patent confirms our position as the true pioneer of the modern business intelligence market. And thanks to our award-winning products, we have continued to gain market share over our main competitors for the past year, and are now in the top position in business intelligence."
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