CalAmp announced that it has entered into a patent license agreement with SKYWATCH GPS for use of CalAmp's U.S. Patent Nos. 6,025,774 and 6,249,217 B1. The patents relate to a vehicle location system that enables automobile finance companies to locate and repossess vehicles serving as collateral on loans that go into default.
CalAmp acquired these patents as part of its acquisition of the Aercept Vehicle Tracking business from AirIQ in March 2007.
As previously announced, CalAmp had filed complaints for infringement in the United States Federal Court against SKYWATCH GPS, along with Procon and iMETRIK Solutions. Since that announcement, CalAmp has filed a similar complaint in the United States Federal Court against Trackn, which also conducts business as Enfotrace.
"CalAmp is firmly committed to protecting and enforcing its intellectual property rights and we are pleased to have reached a settlement whereby SKYWATCH GPS will license our patented process technology for use in its business," stated Michael Burdiek, President of CalAmp's Wireless DataCom Division. "We welcome SKYWATCH GPS as a CalAmp license partner and look forward to working with this company to develop growth opportunities for vehicle tracking and asset recovery technologies."
"SKYWATCH GPS supplies turnkey GPS vehicle tracking solutions nationwide, and specializes in supporting Vehicle Financing applications," stated Dan Blanke, President of SKYWATCH GPS. "By licensing CalAmp's patented process technology, we enable our customers to continue to use an advanced technology solution to lower their risk of financing vehicles and vessels, which is increasingly important in today's tightening credit market."
CalAmp's Aercept Vehicle Tracking business provides both equipment and monitoring services for vehicle financing companies, including 'buy-here-pay-here' dealerships that specialize in automobile financing for high credit risk individuals.
According to the 2007 National Independent Automobile Dealers Association (NIADA) Used Car Report, $75.8 billion in used car sales were financed by independent car dealers in the United States during 2006 as Grade C paper or lower, representing an annual addressable market of nearly 9 million vehicles.
