I2 Tech to get $83.3 million SAP settlement

SAP is going to pay I2 Tech $83.3 million to settle a two-year old patent-infringement lawsuit. I2 had accused SAP of infringing on seven of I2’s software patents.
By paying up all of it in cash,SAP has been able to get the patents cross-licensed. Now each party will receive license to certain patents. Read the below Associated Press article in businessweek for details.
I2 Technologies Inc. said it will receive a cash payment of $83.3 million under terms of a patent litigation settlement with German business software maker SAP AG.
I2 makes software that helps companies coordinate deliveries from suppliers with their production schedule, and manage inventory.
The companies have agree to cross license certain patents, and dismiss all existing legal action with prejudice.
Further terms weren't disclosed.
I2 expects to receive the cash payment in the third quarter. The company also said that since the settlement will boost financial performance, second-quarter results are no longer expected to be flat with the first quarter.
Shares rose 37 cents, or nearly 3 percent, to $13.09 in afternoon trading on an overall down day for the markets.
Source: http://investing.businessweek.com/research/stocks/news/article.asp?docKey=600-200806260839APDIGITLFINANCE__i2_Technologies_SAP_S-6AJ23A7BOO94R6D9VMCTEHU7DQ×tamp=06/26/2008%208:39%20AM%20ET&headline=I2%20Tech%20to%20get%20%2483.3%20million%20SAP%20settlement&docSource=AP%20Digital&provider=ACQUIREMEDIA&realtedsyms=|US%3BITWO|US%3BSAP&symbol=SAPG.DE

“I2 makes software that helps companies coordinate deliveries from suppliers with their production schedule, and manage inventory.” Reading this line from the AP article makes me wonder how I2 has been relegated to the role of an inventory management solutions provider. Wasn’t it delivering a suite of products in almost all functional areas of Supply Chain? Maybe , its time to discuss why I2,which was one of the leaders in the best-of-breed SCM software providers, declined. This would lead to the wider debate of best-of-breed vs ERP.