BY BETTY ADAMS

Staff Writer

Saunders Manufacturing Co. Inc., of Readfield, will pay up to $575,000 to settle a patent infringement lawsuit involving clipboard design.

Terms of the settlement -- which totaled almost $950,000 -- were listed in the filings of U.S. Bankruptcy Count for the District of Maine.

Saunders, which made the clipboards, and OfficeMax, which sold them, were sued by Dexas International Ltd. in 2007 in Texas.

Saunders filed for bankruptcy protection in June to settle the litigation, President John Rosmarin said. The firm came out of bankruptcy last week.

The setttlement agreement says $450,000 is to come from Saunders and $500,000 from OfficeMax. The agreement also says OfficeMax can recoup $125,000 of its payment, over time, from Saunders.

In exchange, Dexas is to file for dismissal of the lawsuits.

Also, Saunders is to change the design of products to avoid future infringement. The alteration is to be approved by a neutral third party.

Betty Adams -- 621-5631

badams@centralmaine.com