Kraft and Green Mountain Coffee Agree to Settle

Green Mountain Coffee Roasters Inc. says its subsidiary Keurig Inc. will receive $17 million from Kraft Foods Inc. in exchange for the rights to some of Keurig's patents. The payment serves as settlement of patent infringement litigation, Green Mountain says. In 2007, Keurig filed a patent infringement lawsuit against Kraft and some of its family companies, alleging its single serve beverage cartridges, called Tassimo T Discs, infringe on Keurig's patent for a single cup brewing system that uses prepackaged coffee. Green Mountain said in a news release the patents pertain to the manufacture, distribution and sale of beverage brewing machines and certain beverage filters. Michael J. Degnan, vice president and general counsel for Keurig, says both parties agreed it was best to avoid the cost and uncertainties of litigation. Kraft says in a statement the settlement was "an efficient and pragmatic way to resolve the issue." Kraft also says it would continue to expand its Tassimo business around the world.