Vivint refuses to pay licensing fees to Alarm.com, arbitration filed

Nov. 1, 2022
Alarm.com Holdings announced that Vivint has notified the company that it will stop paying license fees to Alarm.com under the Patent Cross License Agreement between the companies.

Alarm.com Holdings announced that Vivint has notified the company that it will stop paying license fees to Alarm.com under the Patent Cross License Agreement between the companies. Vivint has paid the required licensing fees to Alarm.com since the agreement was executed in November 2013.

Alarm.com said it disputes Vivint’s refusal of payment, has filed for arbitration per the agreement, and is actively evaluating additional legal remedies.

Beginning with the fourth quarter of 2022, Alarm.com believes that quarterly SaaS and license revenue and total revenue will be impacted by approximately $6 million, or 2.8% of total revenue in the fourth quarter of 2022. Alarm.com also believes that quarterly earnings and cashflow will be impacted by the aforementioned $6 million, plus additional legal fees.

SecuirityInfoWatch.com has submitted a request for comment on the matter to Vivint. 

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