There were two aspects of this patent infringement case. The first was shortly after the rifle was issued. It had to do with the stripper clips used. After examination of the German patents after being contacted by the German patent holders, the U.S. agreed to pay royalties of 50 cents per thousand stripper clips and 75 cents per rifle until the sum of $200,000 had been paid. These royalties were paid from 1905 to 1909. There was no litigation and the settlement was decided amicably.
When the Spitzer bullet was adopted later, another German company said that their patents had been violated. Since the U.S. had also been investigating a Spitzer (pointed) type bullet, the claims were rejected by the U.S. The lawsuit went to trial in July, 1914; with the start of WWI shortly after, the suit was put aside. In 1917, the German patents were seized as alien property.
After WWI, a tribunal decided that, while the suit may not have been vaid, the seizure of assets by the U.S. was not. As a result, the U.S. had to pay over $400,000 including over $100,000 interest on basically a technicality.
(Much of this material is taken from Clark Campbell's book on the 1903 but the gist of it is agreed by most other historians.)
"No man's life, liberty, or property is safe, while Congress is in session." Mark Twain