Vascular Solutions (NSDQ:VASC) said it agreed to settle a patent infringement beef with Terumo Corp. (TYO:4543) over hemostasis devices for a 1-time payment of $812,000 and a promise from Terumo not to sue again over Vascular Solutions’ Vasc Band device.
Terumo sued Vascular Solutions in February, accusing it and Chinese contract manufacturer Lepu Medical Technology infringing the patents and trademark for its TR Band hemostasis device with Vascular Solutions’ R Band product.
The lawsuit, filed Feb. 14 in the U.S. District Court for New Jersey, sought a judgment of infringement, injunctions barring further infringement, infringement damages (tripled for a finding of willful infringement) and legal fees for both the patent and trademark infringement charges, according to court documents. Terumo later added allegations that Vascular Solutions’ newer Vasc Band device also infringed the patents.
Yesterday Vascular Solutions revealed that a settlement was reached earlier this month, according to a regulatory filing.
"On Oct. 11, 2013, the company and Terumo reached an agreement to settle the litigation, whereby the company will make a 1-time payment to Terumo in the amount of $812,000 and Terumo will agree that the current design of the Vasc Band product does not infringe any claim of any issued Terumo patent and will not sue the company on any future issued patent concerning the current design of the Vasc Band," according to the filing. "The company’s settlement payment was accrued as litigation expense in the 3rd quarter of 2013 and is expected to be paid to Terumo in the 4th quarter of 2013."
The lawsuit was dismissed with prejudice by Judge Peter Sheridan Oct. 15, according to court records, with each side bearing its own legal costs.