KISTA, Sweden, Jan. 25, 2018 /PRNewswire/ -- Enea has previously communicated the initiation and progress of the arbitration proceedings between Enea and one of the company's largest customers, see press releases of November 3, 2016 and November 16, 2017.
Enea has now received the arbitral award. The arbitral tribunal denied one part of Enea's case, where Enea had indicated preliminary claims for additional royalties of as much as SEK 900 million, but accepted another, smaller, part of Enea's case. Both parts of Enea's case concerned how the royalty provisions in the contract with the customer should be interpreted. The arbitral tribunal was, as the case was finally formulated, not assigned to decide on the financial consequences of the outcome. This means that it is now for the parties to implement the award. At this point it is not possible to draw any quantified conclusions as to the consequences of the award, but Enea is entitled to additional royalties for the period starting 2004 and onwards. The arbitral tribunal's interpretation of the contract in relation to the disputed issues will also govern the contract going forward, unless and until the parties agree otherwise.
The arbitral tribunal considered that the part of Enea's case which was denied constituted the major part of the arbitration. As a result hereof, Enea was ordered to pay 80%, amounting to approximately SEK 10.1 million, of the customer's legal costs in the arbitration, and arbitration costs in an additional amount of approximately SEK 3.1 million.
As announced, the dispute with the customer also includes a one-sided price reduction that the customer has sought to force upon Enea. As already announced, that part of the dispute could not be brought within the scope of the proceedings now completed but is being handled separately.
This is information that Enea AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 20:56 CET on January 24, 2018.
About Enea
Enea develops the software foundation for the connected society. We supply open-source based NFVI software platforms, embedded DPI software, Linux and real-time operating systems, and professional services. Solution vendors, Systems Integrators, and Service Providers use Enea to create world-class networking products and services. More than 3 billion people around the globe already rely on Enea technologies in their daily lives. Enea is listed on Nasdaq Stockholm. For more information: www.enea.com
Enea®, Enea OSE®, Netbricks®, Polyhedra®, Zealcore®, Enea® Element, Enea® Optima, Enea® LINX, Enea® Accelerator, Enea® dSPEED Platform and COSNOS® are registered trademarks of Enea AB and its subsidiaries. Enea OSE®ck, Enea OSE® Epsilon, Enea® Optima Log Analyzer, Enea® Black Box Recorder, Polyhedra® Lite, Enea® System Manager, Enea® ElementCenter NMS, Enea® On-device Management and Embedded for LeadersTM are unregistered trademarks of Enea AB or its subsidiaries. Any other company, product or service names mentioned above are the registered or unregistered trademarks of their respective owner. © Enea AB 2018
For more information visit www.enea.com/investors or contact:
Anders Lidbeck, President & CEO
E-mail: anders.lidbeck@enea.com
Julia Steffensen, Investor Relations
Phone: +46-70-971-03-33
E-mail: julia.steffensen@enea.com
This information was brought to you by Cision http://news.cision.com
http://news.cision.com/enea-ab/r/arbitral-award-rendered-in-enea-s-dispute-with-a-large-customer,c2437728
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