DuPont Co. settled a long-running trade-secrets case against
rival Kolon Industries Inc. involving fiber used to manufacture
bulletproof vests.
Kolon agreed to pay DuPont $275 million in restitution as part
of a settlement that included upfront and ongoing payments,
officials for the companies said Thursday. Kolon also pleaded
guilty to a federal charge of conspiracy to convert trade secrets
and will pay an $85 million penalty, according to the U.S.
Department of Justice.
The agreements end a six-year-old dispute that arose when DuPont
sued Kolon in 2009, charging that the South Korean company acquired
proprietary information about DuPont's Kevlar fiber from former
DuPont employees. Kolon, which produces synthetic fibers such as
nylon and polyester, had argued that at least some of the
information DuPont sought to protect had long been in the public
domain.
The restitution Kolon agreed to pay DuPont is far smaller than
the $920 million in damages that a U.S. District Court in Richmond,
Va., awarded DuPont in 2011. A federal appeals court overturned
that ruling, which DuPont called one of the largest intellectual
property damage awards, in April 2014.
Thursday's settlement pleased DuPont, according to Stacy Fox,
senior vice president and general counsel for the Wilmington, Del.,
company. "The resolution of this litigation helps ensure the
protection of our proprietary technology," she said.
"Kolon is pleased to have all their matters with DuPont and the
government resolved," said Jeff Randall, a partner with Paul
Hastings LLP and lead counsel for Kolon.
DuPont shares were slightly lower at $73.55 in Thursday
afternoon trading.
Write to Jacob Bunge at jacob.bunge@wsj.com
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