Neo settles European patent litigation with Rhodia for €7.1 million, ending disputes without affecting earnings or automotive catalyst sales.
Neo Performance Materials Inc. has confirmed that it has successfully reached a comprehensive settlement to conclude a long-running European patent dispute involving several of its wholly owned subsidiaries. The agreement brings closure to litigation with Rhodia Opérations S.A.S, a company fully owned by the Solvay Group, and resolves outstanding legal matters associated with a defined group of European patents.
The settlement involves Neo’s European operating entities, including Neo Chemicals & Oxides (Europe) Ltd., NPM Silmet OÜ, and NPM C&O Europe OÜ, all of which were parties to the proceedings. These subsidiaries entered into the agreement with Rhodia Opérations S.A.S to end litigation related specifically to the German designation of multiple European patents. One additional patent designation related to Estonia has also been included within the scope of the settlement.
The patents covered by the agreement include EP 0 735 984 B1, EP 0 605 274 B1, EP 0 863 846 B1, EP 0 955 267 B1, EP 1 527 018 B1, EP 2 007 682 B1, EP 2 523 907 B1, EP 1 435 338 B1, and EP 3 009 403 B1. These patents formed the basis of the disputes that had been progressing through European courts, primarily in Germany, prior to the parties reaching a negotiated resolution.
Under the financial terms of the settlement, Neo Performance Materials Inc. will make a single aggregate cash payment of €7.1 million to Rhodia. This payment is scheduled to be completed during the first quarter of 2026. In exchange, all parties have agreed to a mutual release of claims, effectively ending all legal actions related to the patents included in the agreement. Any ongoing court proceedings connected to these patents will be formally withdrawn, ensuring that no further litigation will continue between the parties on these matters.
Importantly, most of the patents referenced in the settlement have already expired. The only exception is EP 2 007 682 B1, which remains active. However, Neo has clarified that the resolution of this matter is not expected to restrict its ability to continue selling its existing automotive catalyst products. The company emphasized that its current operations, customer commitments, and product supply arrangements remain unaffected by the agreement.
From a financial reporting perspective, Neo noted that the settlement amount is broadly consistent with provisions that had already been recognized in its financial statements. As a result, the company does not anticipate any material impact on its earnings as a consequence of finalizing the settlement. This alignment between previously accrued amounts and the final settlement figure allows Neo to manage the resolution without introducing unexpected financial volatility.
The conclusion of the dispute is expected to provide Neo with greater legal certainty in Europe, allowing management to focus on operational priorities and strategic growth initiatives. By resolving the patent litigation, the company has removed a source of prolonged legal risk and administrative burden, reinforcing stability for its European businesses.
Overall, the settlement represents a pragmatic outcome for all parties involved, closing a complex chapter of patent-related litigation while preserving Neo’s commercial position and financial outlook in its key markets.
