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UPDATE 1-BorgWarner pays Honeywell $25 mln over patent

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MORRISTOWN, N.J., July 29 (Reuters) - Aerospace company Honeywell International Inc. said on Monday it has received $25 million from automotive supplier BorgWarner Inc. as partial settlement of a patent infringement suit.

The settlement, reached a week earlier, came after a district court in Dusseldorf, Germany, granted Honeywell's request for a preliminary injunction requiring BorgWarner to immediately halt production of turbochargers that infringe Honeywell's patent, Honeywell said in a statement.

Turbochargers help cars run faster by boosting engine power.

Chicago-based BorgWarner said in April the company acquired the product in question when it bought German manufacturer Kuhnle, Kopp and Kausch in 1997.

The company decided earlier this year not to contest the infringement allegation because it no longer produced the product.

In order to permit automotive manufacturers to continue operations, Honeywell agreed to grant BorgWarner a limited license to continue sales of models of its variable geometry turbochargers that would otherwise violate the court order.

That license will run through June 2003.

Shares of BorgWarner closed Monday at $55.84, up $3.12, or 5.9 percent, on the New York Stock Exchange. Honeywell shares ended up $2.47, or about 8.1 percent, at $33.12 on the NYSE.