Originally Published MX November/December 2005
COVER STORY
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ArthroCare's fundamental technology is surrounded by one of the strongest, broadest, and deepest intellectual property sets in the medtech industry, according to the company's president and CEO, Michael A. Baker. Following is a rundown of ArthroCare's history of patent litigation and the agreements that have emerged because of it.
ArthroCare v. Ethicon/Johnson & Johnson
Litigation initiated: February 1998
Agreement reached: June 1999
Agreement terms: Ethicon agreed to license ArthroCare's U.S. patents in the arthroscopy and gynecology markets. Ethicon agreed to pay ArthroCare a license fee and ongoing royalties on U.S. sales of certain arthroscopy and gynecology products. The agreement also established a procedure for resolution of certain potential intellectual property disputes in these two markets without litigation. Under this procedure, the licenses granted in the settlement were extended to Australia, Canada, and Japan.
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| ArthroCare's Super TurboVac is used in sports medicine procedures. (click to enlarge) |
ArthroCare v. Stryker Corp.
Litigation initiated: June 2000
Agreement reached: July 2000
Agreement terms: ArthroCare granted Stryker a worldwide, nonexclusive license covering bipolar devices in arthroscopy. Stryker agreed to pay ArthroCare an initial license fee and ongoing royalty payments on worldwide sales of its Serfas arthroscopy product set.
ArthroCare v. Smith & Nephew
Litigation initiated: July 2001
Agreement reached: September 2005
Agreement terms: ArthroCare signed a worldwide product supply agreement with the endoscopy business of Smith & Nephew. Under the agreement, ArthroCare agreed to manufacture bipolar and monopolar arthroscopy products for worldwide sale by Smith & Nephew. ArthroCare receives royalty payments for all bipolar products Smith & Nephew sells in the United States and for bipolar shaver products manufactured and sold by Smith & Nephew worldwide. ArthroCare was also granted a license for the worldwide sale of Smith & Nephew spine products. ArthroCare received a one-time cash settlement payment at signing and will receive a series of related milestone payments over the first year.
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