Cordis Corporation (Cordis), the heart subsidiary of Johnson & Johnson, has recently reached a settlement agreement with Boston Scientific Corporation (Boston). This agreement settles patent infringement suits involving Boston's NIR stent. The agreement also settles other patent suits concerning patents for Ding, Kastenhofer, Palmaz, and Fontirroche, as well as a Canadian patent case. The cases involve stents, drug-eluting stents, balloon materials and stent delivery systems.

According to publicly available court documents in the NIR case, a federal jury in the district of Delaware found in favor of Cordis against Boston in March of 2005. After several further legal proceedings, Boston put in a proposed order of judgment in November 2008. A stipulation of dismissal noting the settlement agreement in the NIR case was just filed Thursday. Note that the NIR case was originally filed in 1997.

According to a press release, Cordis will exchange paid-up licenses for some intellectual properties, and Boston will pay Cordis Corporation $716.3 million.

"We are pleased to resolve several of these patent litigations," said Seth Fischer, Company Group Chairman and Worldwide Franchise Chairman, Cordis Corporation.

"We are pleased we have been able to significantly reduce the amount of outstanding litigation we have with Johnson & Johnson," said Ray Elliott, President and Chief Executive Officer of Boston Scientific. "We continue to work with them to resolve other outstanding matters."

Cordis notes other litigation between the two companies will not be affected by the settlement, such as relating to the Express, Taxus, Taxus Liberte and Promus Stents, and Cordis's pending Fischell case against NIR. Boston's lawsuit against the CYPHER Sirolimus-eluting Coronary Stent under the Jang patent will also continue.

Adapted in part from press releases by Boston Scientific and Cordis, and publicly available legal documents.

Links:
http://bostonscientific.mediaroom.com/index.php?s=43&item=869

http://www.cordis.com/sites/default/files/pdfs/press/FINAL_Legal_BSX_settlement_for_NIR_et_al_9_24_09.pdf#zoom=100

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