Mips to pay $3.25 million to BrainGuard Technologies to resolve multi-year patent infringement dispute

Helmet safety technology pioneer Mips AB has agreed to pay $3.25 million to BrainGuard Technologies to resolve a multi-year patent infringement dispute originally brought against one of its major retail customers.

The settlement completely halts ongoing litigation and shields both Mips and its commercial partners from existing or future liability regarding the disputed patents.

A Shield for Corporate Partners

The roots of the legal battle trace back to 2024, when El Cerrito, California-based BrainGuard Technologies filed a lawsuit in a California U.S. District Court against Vista Outdoor Inc. and Revelyst Sales LLC. BrainGuard alleged that popular bike, snow, and motorsports helmets from prominent brands like Bell, Giro, and Fox Racing infringed on its proprietary intellectual property.

Mips itself was not a primary defendant, nor were its own patents targeted. However, because the targeted brands heavily feature Mips’ industry-standard rotational safety yellow liners, the Swedish company stepped into the litigation in 2025 to aggressively back its customer. (Revelyst, which owns Bell, Giro, and Fox, was sold by Vista Outdoor to Strategic Value Partners in 2025).

While Mips and Revelyst actively maintained that BrainGuard's patents were invalid throughout the trial, Mips ultimately opted to settle to eliminate the mounting costs and commercial distractions of prolonged courtroom battles.

"Nothing in the settlement shall be construed as an admission of liability, wrongdoing, or infringement by Mips or Revelyst," the corporate statement clarified.

Financial Impact and Executive Outlook

The seven-figure, $3.25 million payout will be entirely absorbed by Mips and is slated to hit the company's adjusted operating profit for the third quarter of 2026.

Despite the financial dent, Mips leadership emphasized that protecting their global partner network is a core pillar of their business model.

Mips Settlement Overview:

• Payout Amount: $3.25 Million USD

• Recipient: BrainGuard Technologies

• Financial Impact: Negative hit to Q3 2026 adjusted operating profit

• Protection Scope: Full immunity for Mips and all global customers

"As an innovation-driven world leader in helmet safety technology solutions, with a broad customer base among leading helmet brands, we at Mips will at all times forcefully defend our own intellectual property rights against potential threats," said Max Strandwitz, CEO of Mips. "From the outset of this case we have been, and remain, convinced that there were never any grounds for the alleged infringement raised against our customer."

Strandwitz concluded that navigating global patent friction is simply a reality for market-leading technology firms. "At times, it may still for commercial reasons be better to agree on a settlement than to pursue lengthy and expensive litigation. I am now very happy to have this specific case behind us, allowing us to focus on our continued successful growth journey."