Baker Hughes, ReedHycalog Pen Tech Reciprocal License Agreement

Baker Hughes Incorporated announced that it has reached reciprocal license agreements with ReedHycalog, a division of National Oilwell Varco, Inc. regarding outstanding patent infringement claims and counter-claims.

As part of the agreements, Baker Hughes and ReedHycalog have agreed to a cross license of the disputed technologies. Baker Hughes will pay ReedHycalog $70 million in royalties for prior use of certain patented technologies and will pay a minimum of $30 million in royalties for future use. ReedHycalog has agreed to pay royalties for the license of certain Baker Hughes patented technologies.

Baker Hughes Oilfield Operations, Inc. will be dismissed from and have no liability, and will release ReedHycalog from all counter claims, in connection with the previously disclosed litigation currently pending in U.S. District Court, Eastern District of Texas.