Itron, Schlumberger Strike Deal Agreement Ends Dispute Over Use Of Itron Technology

Itron Inc. has resolved a dispute with the world’s largest utility meter manufacturer over unauthorized use of Itron technology.

Schlumberger Industries Inc. has agreed to pay Itron an undisclosed amount for rights to use Itron automatic meter reading technology with Schlumberger’s new R300 meter.

“They introduced this technology about a year ago,” Mima Scarpelli, Itron’s treasurer, explained Thursday, “and there were some intellectual property rights issues related to how these new meters would be read.

“We have been in discussion for a number of months trying to reach some common agreement…”

Spokane-based Itron is a leading supplier of data acquisition and wireless communications products for the utility industry worldwide. Itron’s devices allow utility companies to read gas, water and electric meters without actually going into the buildings where the meters are located. Itron’s Genesis line of products includes hand held, mobile and fixed network automatic meter reading devices.

Scarpelli explained that Schlumberger built Itron remote meter reading technology into their R300 meter. And although Itron has agreements in place with “all of the large meter manufacturers” allowing its technology to be used, Itron had concerns that Schlumberger’s use of that technology in the R300 was not fully authorized.

The amount of money Schlumberger will pay Itron to resolve the disagreement “is not expected to have a significant impact” on Itron’s income, Scarpelli said.

The agreement provides that Schlumberger may release certain additional products that work with Itron’s Genesis products and systems.

“Itron will continue to work with a broad crosssection of industry participants,” Johnny Humphreys, Itron’s president and CEO, said in a news release Thursday.

“This agreement is additional proof of Itron’s commitment to open systems and interconnectivity, and to further development of automatic meter reading technology for the utility industry.”

Schlumberger Industries is a subsidiary of Schlumberger Limited, a multinational energy services company with annual revenues exceeding $6.6 billion. It employs more than 50,000 people in 100 countries.

Itron’s systems are used to read 220 million meters at more than 1,200 utilities world wide. The company had revenues of $120.7 million in 1994.