The Commission vote to accept the consent agreement containing the proposed consent order for public comment was 4-0. In addition to the licensing requirements, the proposed consent order bars Honeywell from filing patent infringement actions against Datalogic for 2D scan engine products, and from transferring the patents in the license to anyone who does not commit to abide by the terms of the order. In order to preserve competition, the proposed consent order requires Honeywell to license its own 2D scan engine patents as well as those held by Intermec to Datalogic. Datalogic markets 2D scan engines similar to those made by Honeywell and Intermec outside of the United States, but it currently lacks the necessary patent rights to compete in the United States. market from 2D scan engine manufacturers active outside the United States is lack of access to the relevant U.S. The most significant barrier to entry into the U.S. market for 2D scan engines and increase the likelihood of post-acquisition coordination between Honeywell and Motorola. Accordingly, Honeywell’s acquisition of Intermec would leave two companies – Honeywell and Motorola – with control of more than 80 percent of the already highly concentrated U.S. Under an agreement signed on December 9, 2012, Honeywell proposes to acquire Intermec for approximately $600 million.Īccording to the FTC’s complaint, Honeywell, Intermec, and a third competitor, Motorola, are the only 2D scan engine makers in the United States that have broad enough intellectual property portfolios to insulate them, and their customers, from potential patent-infringement lawsuits. Intermec, headquartered in Everett, Washington, is a leading manufacturer of scan engines and other automated identification and data capture equipment, including barcode scanners and printers. and Metrologic Instruments, Inc., the latter of which does business as Honeywell Scanning and Mobility. It develops 2D scan engines and related devices through its subsidiaries Hand Held Products, Inc. Honeywell is a New Jersey-based diversified technology and manufacturing company with worldwide operations. market immediately and restore the competition lost due to the merger.” “By requiring Honeywell to license its technology, the proposed order gives Datalogic access to the patents it needs to enter the U.S. “Although divestiture of assets is the preferred remedy in merger cases, licensing requirements can preserve competition in markets where access to needed technology is the main barrier to entry,” said Deborah Feinstein, Director of the FTC’s Bureau of Competition. Scan engines are used in products such as retail store scanners to translate an image (often a UPC barcode) into a digital format that can be interpreted and analyzed by a computer. The proposed FTC consent order preserves competition in the market for 2D scan engines by requiring Honeywell to license its and Intermec’s patents for 2D scan engines to Datalogic IPTECH s.r.l for the next 12 years. to license patents critical to the manufacture of two-dimensional (2D) bar code scanners, under a settlement resolving FTC charges that Honeywell’s acquisition of rival scan engine manufacturer Intermec Inc. The Federal Trade Commission will require Honeywell International Inc. About the FTC Show/hide About the FTC menu items.News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items.Competition and Consumer Protection Guidance Documents.Enforcement Show/hide Enforcement menu items.The completion of this acquisition follows the approval by Intermec shareholders on March 19 as well as the receipt of required regulatory approvals in the United States and European Union. Intermec will be integrated with Honeywell Scanning & Mobility, within the company’s Automation and Control Solutions business. “The acquisition of Intermec will add innovative products and solutions, as well as deep engineering expertise and a broad global sales channel that further demonstrates our commitment to provide our customers an increasing array of innovative technologies in the highly attractive AIDC industry,” said John Waldron, president of Honeywell Scanning & Mobility. Honeywell announced its intent to acquire Intermec in December 2012, in an all-cash transaction valued at approximately $600 million. Honeywell today announced that it has completed its acquisition of Intermec (NYSE: IN), a leading provider of mobile computing, radio frequency identification solutions (RFID), voice-enabled workflow and data-collection solutions, and printing solutions. Honeywell Completes Acquisition of Intermec Addition of Intermec Builds on Hand Held Products, Metrologic and EMS Acquisitions To Build Market-Leading Position.
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