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Wednesday, October 5, 2011

Allstate to license Progressive patents

Allstate to license Progressive patents

* Other terms not disclosed

Oct 3 (Reuters) - Auto insurers Progressive Corp (PGR.N) and Allstate Corp (ALL.N) have settled a patent dispute over technology that lets insurance companies charge drivers based on how, where and how much they drive.

Progressive sued Allstate, alleging that Allstate infringed some of its patents and trademarks for what it called "usage-based insurance."

In a statement, Progressive said on Monday it licensed certain patent portfolios to Allstate, and that the two companies had entered into an agreement to let their various trademarks co-exist. Terms were not disclosed.

Allstate markets its program under the "DriveWise" label, while Progressive makes use of the "Drive" trademark.

Both insurers offer a device that policyholders can plug into their cars, which measures not only how much the customer drives but how fast they go, how often they brake hard and so on.

Both companies advertise the ability of customers to earn discounts of up to 30 percent on their premiums, depending how they drive. (Reporting by Ben Berkowitz; Editing by Derek Caney)

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