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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DECEMBER 1, 2000
(Date of Report)
TIMELINE, INC.
(Name of Registrant as Specified in its Charter)
STATE OF WASHINGTON 1-13524 91-1590734
(State or Other Jurisdiction Commission File Number (IRS Employer
of Incorporation) Identification Number)
3055 112TH AVENUE N.E., SUITE 106
BELLEVUE, WASHINGTON 98004
(Address of Principal Executive Offices)
(425) 822-3140
(Telephone Number)
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ITEM 5. SETTLEMENT OF PATENT INFRINGEMENT LAWSUIT WITH SAGENT
Effective December 1, 2000, Timeline, Inc. and Sagent Technology, Inc. entered
into a Settlement Agreement and Release for the mutual settlement of the patent
infringement lawsuit filed by Timeline against Sagent in the U.S. District Court
for the Western District of Washington (Case No. C99-0414C). Under the terms of
the settlement, Sagent is obligated to pay $600,000 in cash and issue 600,000
shares of Sagent common stock to Timeline. Effective upon receipt of the cash
and stock from Sagent, Timeline has agreed to dismiss the lawsuit against
Sagent. As part of the settlement, Sagent admitted the validity and
enforceability of the claims of Timeline's patents, but did not admit
infringement.
As part of the settlement, Timeline entered into a patent license agreement with
Sagent under which it granted to Sagent a non-exclusive license to use
Timeline's U.S. patents (Nos. 5,802,511, 6,023,694 and 6,026,392) in connection
with Sagent's products. Timeline also covenanted not to bring further suits for
patent infringement against Sagent or its customers arising out of the use of
the licensed products. In addition, Sagent covenanted not to sue Timeline or
users of its products for infringement of Sagent's U.S. patent (No. 6,038,558)
in connection with Timeline's products.
The 600,000 shares of Sagent common stock issuable to Timeline will be
restricted under U.S. securities laws, and Sagent has agreed to file a
registration statement for the shares as soon as possible.
Timeline and Sagent issued a joint press release on December 4, 2000, announcing
the settlement with Sagent, a copy of which is filed as Exhibit 99.1 to this
Current Report on Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits.
Number Description
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99.1 Company press release dated December 4, 2000: "Sagent
and Timeline Settle Patent-Infringement Case."
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized, dated as of December
4, 2000.
TIMELINE, INC.
By: /s/ Charles R. Osenbaugh
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Charles R. Osenbaugh
Chief Executive Officer