Penny stock

SmarTire Systems


doubled in early trading after putting a patent dispute with TRW Automotive behind it.

The company said late Monday that it reached a settlement in which its royalty-free access to a TRW patent was reinstated, as long as it can come up with $850,000 it owes the company. The patent is for motion-detection technology SmarTire uses in its tire-monitoring system.

SmarTire said in February that it had missed payments on money it owed TRW under a debenture, leading to suspension of the patent. TRW Automotive was recently bought by private equity firm Blackstone Group.

SmarTire's shares more than doubled to 16 cents on the news.