Finjan and Mimecast have officially agreed not to pursue further legal action in a dispute that surrounded patent infringements.
Finjan Holdings (NASDAQ:FNJN), cybersecurity company has resolved patent disputes with Mimecast (NASDAQ:MIME). The two companies signed mutual covenants agreeing not to sue for several years. Shares of Finjan have increased as much as 8 percent following the resolution.
As quoted in the press release:
In addition, to achieve global patent peace between the companies, Finjan Holdings, Inc. and Mimecast Limited and Mimecast North America, Inc. have entered into mutual covenants not to sue for a certain number of years, among other terms which are confidential.
“We continue to believe that resolving our patent disputes outside of litigation is the least disruptive, most efficient and cost-effective way in which to earnestly respect each other’s patents and cyber technologies. Importantly, our focus has steadfastly been on making sure that Finjan’s patented technologies are recognized as valuable both to its shareholders, as well as to providers in the cybersecurity space in fighting the ever-growing hacker community,” stated Julie Mar-Spinola, Chief IP Officer and VP, Legal Operations for Finjan.