Outdoor recreation company Johnson Outdoors Inc., on July 10, said it's ending a long-standing intellectual property dispute with Confluence Holdings Corp. of Easley, S.C., with a one-time payment of $4.4 million, with neither side admitting to any wrongdoing.
``After weighing the costs, risks and business distractions associated with continued litigation of this matter against the potential benefit, it became clear that it was in the financial best interests of the company and its shareholders to settle and move on,'' said David W. Johnson, vice president and chief financial officer, in a news release.
The terms of the agreement are confidential. However, the Racine-based company said it is insured against loss for certain matters, and they have filed a claim in this matter. It said it did not expect resolution of the claim in fiscal 2007.
Johnson designs, manufactures and markets watercraft, marine electronics, diving and outdoor equipment. Its brands include Old Town canoes and kayaks.
Johnson's Old Town Canoe division had been involved in a suit and countersuit with Confluence concerning a possible patent infringement in the making of canoes.