Norwegian robotics specialist AutoStore is to pay £200 million to British online grocery retailer and tech supplier Ocado Group as part of a deal to settle all outstanding patent litigation claims.
Both companies licence their technology to retailers and had been involved in legal battles to defend their intellectual property.
They are now able to use and market all their own existing products without challenge.
AutoStore will pay £200 million Ocado in instalments over a two-year period. No reason was given for this payment.
The agreement does not allow for collaboration, technology support between the companies, or access to actual products.
It does, however, grant access to both the companies to certain portions of each other’s patent portfolios for them to use or manufacture their own products.
Speaks for itself! https://t.co/T1KPkTdU2t
— Luke Jensen (@LukeJensenOcado) July 23, 2023
Tim Steiner, CEO at Ocado, says: “I am pleased we have been able to settle the disputes in a constructive and collaborative manner. We can now each move forward and concentrate on providing our partners with world beating technology.”
Mats Hovland Vikse, CEO at AutoStore, says “We are glad to have achieved a resolution that gives both companies opportunity and freedom to commercialise our extensive patent portfolios. This settlement resolves our differences and allows us to continue focusing on our respective business goals.”
Brittain Ladd, a supply chain consultant and former Amazon executive, comments: “This was arguably one of the dumbest lawsuits in the history of the automation industry.”
“On their own, both companies are successful. Had they agreed to merge and maximise their combined technology, Ocado/AutoStore would be unstoppable.”
“Had a combined Ocado/AutoStore acquired Instacart, and ended the exclusivity agreement with Kroger, they would have become the largest automated fulfilment company for the grocery industry and eventually most of retail”
He added: “It’s also plausible that Ocado/AutoStore could have converted Instacart from a fulfilment company for other grocery retailers, to being their own online grocery retailer fulfilling online orders direct to Instacart customers from Ocado/AutoStore fulfilment centres.”
“Instacart would be second only to Walmart in terms of order volume. A combined Instacart – Ocado – AutoStore – would be valued at over $25 billion. Ocado and AutoStore let their egos get in the way of thinking big.”
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