CAS Medical wins a legal round against Covidien's Nellcor

August 12, 2013 by Brad Perriello

A federal judge tosses 1 count of a patent infringement lawsuit filed by Covidien's Nellcor subsidiary against CAS Medical over patient monitoring technology. Legal News

CAS Medical (NSDQ:CASM) won a round in a legal battle with Covidien's (NYSE:COV) Nellcor patient monitoring subsidiary over technology used to measure oxygen levels in the brain, after a federal judge in Michigan tossed a breach-of-contract claim against CasMed.

Nellcor sued CasMed in late 2011, alleging that its Branford, Conn.-based rival broke their deal settling a patent infringement lawsuit by protesting the validity of the patent, the "'065 patent," during a re-examination by the U.S. Patent & Trademark Office.

In July 2012, Nellcor filed a motion for summary judgment, asking Judge Sean Cox of the U.S. District Court for Eastern Michigan to bar CasMed from further participating in the re-examination, court documents and regulatory filings show. Cox shot down that bid and another Nellcor motion to reconsider, according to court documents, and stayed the damages phase of the case relating to the breach of contract charge.

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In June of this year, Cox granted a motion by CasMed to toss the breach of contract claim, ruling that the patent office's re-examination of the patent is distinct from the patent itself.