ResMed settles licensing, patent spat for $25M

August 19, 2013 by Brad Perriello

ResMed settles a licensing and patent infringement dispute with Australia's University of Sydney for $25 million.

ResMed settles licensing, patent spat for $25M

ResMed (NYSE:RMD) said it paid a total of $25 million to settle a lawsuit filed in Australia by the University of Sydney accusing it of breaking a licensing deal and patent infringement.

The university sued San Diego-based ResMed in 2007 in the Federal Court of Australia, alleging that it failed to pay royalties and infringed patents covering sleep apnea masks. ResMed counter-sued and the case went into forced mediation in May 2013.

The mediation resulted in a "new partnership" and the $25 million payout to the school to "support its work, including the establishment of 2 perpetual academic chairs called the ResMed Chair of Sleep Medicine for sleep-disordered breathing with a focus on chronic disease and the ResMed Chair of Biomedical Engineering with an emphasis on bioinformatics research, as well as funding for research in related areas," according to a press release.

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The deal prompted the Australian court to dismiss the case in June, according to a U.S. regulatory filing that details the settlement.