Google, Honeywell resolve Nest Labs patent dispute

The resolution "promotes product innovation and consumer choice in the market for smart home products," the companies said.

Google and Honeywell announced Thursday that they have resolved their patent dispute related to Nest Labs, the Google-owned maker of smart home automation devices.

The terms of the agreement are confidential, though the companies stated they have reached a long-term patent cross-license agreement "reflecting the respective strength of the companies' patent portfolios." The agreement, their statement added, "promotes product innovation and consumer choice in the market for smart home products."

Google purchased Nest for $3.2B in January of 2014, and the company has been emblematic of the Internet of Things movement since rolling out the Nest Learning Thermostat in 2011. There are signs, however, that Nest may be on shaky ground: After generating $340 million in revenue last year, the subsidiary was pegged as underperforming. Last month, Nest announced it is shutting down its Revolv device smart hubs.