Weight loss: GI Dynamics, W.L. Gore settle patent beef

January 10, 2013 by MassDevice staff

GI Dynamics and W.L. Gore & Assoc. settle their long-standing patent beef over GID's EndoBarrier weight loss device.

GI Dynamics

A long-running dispute between W.L Gore & Associates and GI Dynamics (ASX:GID) is over after the medical device companies agreed to settle the beef.

Gore filed the lawsuit in 2010, alleging that it was the co-inventor and co-owner of GI Dynamics' patents, including the latter's flagship EndoBarrier gastrointestinal liner. GI Dynamics filed a countersuit later that year, alleging misappropriation of trade secrets, breach of confidence, breach of contract, unjust enrichment, misrepresentation and unfair and deceptive trade practices.

The lawsuit came to light in late 2011, after GI Dynamics filed its initial public offering in Australia.

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The settlement, which puts to bed all the charges each side leveled against the other, leaves GI Dynamics with "exclusive ownership and control of its patent portfolio," according to a press release. GI Dynamics also granted Gore a non-exclusive, royalty-free license to us its patents for blood vessel devices, as long as it refrains from developing any gastrointestinal devices.

"Neither side will make any cash payments to the other, nor will any royalties be due," according to the release.