AgJunction’s board initiated a confidential process to consider expressions of interest from third parties in response to a multitude of factors, the company said. The board determined “that the transaction with Kubota represents the best alternative available for AgJunction to create substantial value for our respective stakeholders including the shareholders given the current industry, economic and capital markets conditions as well as existing strategic relationship between AgJunction and Kubota.”

In 2019, AgJunction Inc. filed a patent infringement lawsuit against Kubota Corp. and several of its subsidiaries. The suit alleged that Kubota products violated three AgJunction patents related to automated machine control and implement steering.

Source: Future Farming

Total revenue in the second quarter of 2021 was $3.4 million compared to $4.6 million in the second quarter of 2020. The decrease is primarily due to the reduced volume from a North American VAR customer that allegedly breached a supply agreement with AgJunction and infringed certain of its patents, which has since been settled.

Source: AgJunction Release

Total revenue in the fourth quarter fell by 18.2 percent. Total revenue for the year fell by 58.4 percent, although excluding revenue generated from the BPO in the prior year, revenue increased 6.6 percent.

Gross profit for the full year fell by 45.6 percent. Gross margins improved.

Net losses for both the quarter and the year improved compared to losses from the previous periods, attributed primarily to reductions in operating costs.

“I don’t think anyone could have predicted just how disruptive 2020 would be due mostly to the COVID-19 pandemic,” said CEO and president Dr. M. Brett McMickell. “We continued developing in strategically important areas in off-road automation, such as sensor fusion, terrain mapping, vision tracking, and mobile applications. Although our 2020 sales results aren’t exactly where we thought they’d be …, we made great strides in prudently managing costs and optimizing our product mix, which led to a significant increase in our gross margin and improved bottom line profitability.”

With this settlement, AgJunction and Kubota reached a mutually agreeable business resolution that resulted in the dismissal of the lawsuit and all counterclaims. Under the terms of the settlement, AgJunction has granted Kubota a non-exclusive license in the U.S. and Canada to its extensive patent portfolio in exchange for undisclosed royalty payments from Kubota.

The parties also signed a memorandum of understanding to begin discussions about one or more definitive agreements relating to the development and/or supply by AgJunction of autosteer and autonomous solutions for Kubota’s products around the world. Specific terms of the settlement are confidential and have not been disclosed.

“We are very pleased to have been able to settle this matter, allowing AgJunction and Kubota to move forward with serious commercial discussions,” said Bob Barjesteh, executive vice president and general counsel of AgJunction. “Licensing our portfolio to Kubota further validates the strength of our industry-leading patents, allowing us to continue providing unmatched protection to our partners and customers.”

Source: Globe Newswire

“AgJunction has one of the most comprehensive steering and machine control IP portfolios in the industry,” said Bob Barjesteh, vice president of IP and general counsel of AgJunction. “These assets are vital to hands-free steering and machine control functions and are critical components of our corporate strategy. After years of attempting to negotiate a license with Kubota and its suppliers, we are left with no choice but to assert our patents in court.”

The lawsuit seeks monetary damages and an injunction to prevent Kubota from selling in the U.S. any products infringing AgJunction’s patented technology. Specifically named in the lawsuit are Kubota’s M7 Series tractors and their newer updated models with autosteer components.

Source: AgJunction Release