Malibu Boats, LLC, and MasterCraft Boat Company, LLC, have settled the patent infringement cases brought by Malibu against MasterCraft, the companies announced late Tuesday.
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 Malibu CEO Jack Springer. "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. As we continue to innovate and to build our valuable patent portfolio, we will continue to be aggressively focused on ensuring that industry participants recognize the value of our innovation and subsequent patents."
In a statement, MasterCraft said that while it has "steadfastly denied" that its technology infringed any Malibu patents, "but the continuing burden and expense of litigation made settlement the economically prudent move."
Terry McNew, MasterCraft’s president and CEO, said, “We are pleased to have this dispute behind us and look forward to building on MasterCraft’s legacy of award-winning products. 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. We are satisfied that the terms of the settlement are reasonable for both MasterCraft and Malibu, and we look forward to MasterCraft’s continued role in advancing our market segment for the benefit of both MasterCraft and the entire industry.”
Malibu filed the patent suit in 2015, alleging that MasterCraft's Gen 2 Surf System and NXT Surf System violates Malibu's patents.