By Chelsey Dulaney
AppDynamics Inc. and CA Inc. said Monday that they have agreed
to settle a patent dispute that began in 2013 and spawned a series
of lawsuits.
AppDynamics's software monitors how applications are performing
in order to help companies avoid bottlenecks. Its founder and chief
executive, Jyoti Bansal, along with other AppDynamics executives,
previously worked at CA.
In April 2013, CA sued AppDynamics for patent infringement in
federal court in New York. The suit set off a slew of claims and
counterclaims involving when portions of the AppDynamics source
code were written.
CA alleged that AppDynamics misappropriated trade secrets, among
other things, which AppDynamics disputed. Last year, AppDynamics
sought a declaratory judgment from a California court stating that
AppDynamics and its executives didn't misappropriate trade secrets
from CA and didn't use its source code.
Monday's settlement resolves all litigation.
CA said the settlement includes "substantial licensing payments
from AppDynamics." AppDynamics said that it paid a "modest fixed
payment" and obtained an irrevocable license to the patents
involved in the case and other related foreign or domestic
patents.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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