On April 24, 2017 PDL BioPharma, Inc. (PDL or the Company) (NASDAQ: PDLI) reported that on April 21, 2017, the Company entered into a settlement agreement with certain subsidiaries of Merck & Co., Inc. ("Merck") to resolve the patent infringement lawsuit between the parties pending in the U.S. District Court for the District of New Jersey related to Merck’s Keytruda humanized antibody product (Press release, PDL BioPharma, APR 24, 2017, View Source [SID1234518669]). Under the terms of the agreement, Merck will pay the Company a one time, lump-sum payment of $19.5 million, and the Company will grant Merck a fully paid-up, royalty free, non-exclusive license to certain of the Company’s Queen et al. patent rights for use in connection with Keytruda as well as a covenant not to sue Merck for any royalties regarding Keytruda. In addition, the parties agreed to dismiss all claims in the relevant legal proceedings.

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"We are pleased to resolve this patent infringement lawsuit with Merck with a favorable monetary settlement to PDL as well as eliminating potential future litigation costs related to this matter for both parties," said John P. McLaughlin, president and chief executive officer of PDL. "As a result of this settlement, we expect to recognize $19.5 million in license revenue for the second quarter ending June 30, 2017."