Align said the companies reached an agreement that resolves a pending proceeding at the International Trade Commission. The agreement is subject to the outcome of an appeal in the U.S. Court of Appeals for the Federal Circuit.
If the court rules in favor of Align, ClearCorrect will make a pair of $200,000 payments to Align within 30 and 180 days, respectively. Clear Correct will also be forbidden to engage with any former Align or Orthoclear employee over the design of any aligner products to be marketed in the U.S., according to the agreement
If the court rules against Align, ClearCorrect would be released of any obligations. In addition to ClearCorrect US, the agreement also covers ClearCorrect Pakistan, Mudassar Rathore, Waqas Wahab, Asim Waheed and Nadeem Arif, Align said.
The Federal Circuit is expected to hear oral arguments in July, with a decision expected 6 to 9 months later, according to the company.
Last July, that court ruled Align could move forward with its patent infringement case against ClearCorrect. The ruling overturned a 2013 decision by the ITC.
“The resolution allows the parties to avoid the cost of the remanded enforcement action hearing and potential further proceedings, to avoid the uncertainty of the outcome of the remanded enforcement action and to agree, in advance, to a resolution of the remanded enforcement action contingent on the outcome of the infringement action appellate proceedings, given that many issues raised in the remanded enforcement action will ultimately be resolved as part of the appellate process in the infringement action,” Align said in a press release.