MasterCraft, based in Vonore, Tennessee, has reached a resolution of its pending patent litigation with Loudon, Tennessee-based, Malibu Boats. Malibu initially filed the infringement case against MasterCraft Boat Company before the U.S. District Court for the Eastern District of Tennessee.
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 it sells featuring the licensed technology.
MasterCraft denied that its wakesurf technology featured in its MasterCraft Gen 2 and NXT Surf Systems infringed on any of Malibu’s patents. However, citing the “continuing burden and expense of litigation made settlement the economically prudent move.”
“We are pleased to conclude the litigation between our two industry leading companies,” says Jack Springer, Chief Executive Officer of Malibu. “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.”
MasterCraft says it will now focus on continuing the creation, enhancement and sale of its products and the future growth of the company. “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,” says Terry McNew, MasterCraft’s President and Chief Executive Officer. “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.”