Novellus Settles With Applied Materials

Novellus Systems Inc. said it will pay Applied Materials Inc. $80 million in damages and a royalty fee to settle a patent infringement lawsuit. A jury in the U.S. District Court in Northern California last month decided the San Jose-based maker of semiconductor equipment was guilty of using chemical process technologies patented by Applied Materials. Santa Clara-based Applied Materials also makes semiconductor manufacturing equipment. The settlement is significant because Novellus can resume selling its TEOS products, semiconductor manufacturing equipment that puts an insulating layer on semiconductor wafers, which it had stopped selling while the suit was pending. In Nasdaq trading, Novellus shares soared $9.375 to close at $78.75, while Applied Materials shares surged $4.125 to close at $61.75.