Research Affiliates LLC and WisdomTree Investments Inc. said they’ve resolved patent-infringement claims and counterclaims brought against each other in federal court in Santa Ana, California, and agreed not to renew the litigation in the near future.
As part of the settlement, Research Affiliates of Newport Beach, California, will make a one-time payment of $700,000 to WidsomTree, the companies said in a statement today.
“Based on information that came to our attention during the lawsuit, Research Affiliates can now acknowledge that WisdomTree’s fundamentally weighted indexes and strategies were developed by WisdomTree independently of Research Affiliates,” Robert Arnott, chief executive officer of Research Affiliates, said in the statement.
“We are pleased the matter is resolved and our businesses will continue as usual” Jonathan Steinberg, chief executive officer of New York-based WisdomTree, said in the statement.
Research Affiliates and WisdomTree are investment management firms. One of the key documents in the case was Research Affiliates’ 2010 patent for “Using Accounting Data Based Indexing to Create a Portfolio of Assets,” according to court filings.
The case is Research Affiliates v. WisdomTree, 11-cv-1846, U.S. District Court, Central District of California (Santa Ana).