The lawsuit, filed in August 2010 in the U.S. District Court for New Jersey, alleges that Insulet’s flagship OmniPod insulin management device infringes 3 patents licensed to BD – the ‘249 patent for a "Pen-type injector with a microprocessor and blood characteristic monitor;" the ‘021 patent for a "Medication delivery device with a microprocessor and characteristic monitor;" and the ‘895 patent for a "Low-profile automatic injection device with self-emptying reservoir," according to court documents.
BD claims that a series of letters sent in early 2010 to Insulet "provided notice to Insulet of the ‘249 patent and its infringing conduct," according to the documents.
"Despite knowledge of the ‘249 patent, Insulet has continued to infringe this patent. Insulet acted with reckless disregard of the ‘249 patent by continuing to infringe the patent when it knew or should have known that its actions constituted infringement," the lawsuit alleges.
Becton wants the court to find that Insulet infringes all 3 patents with the OmniPod and to enjoin the company from further infringement, according to the complaint. The lawsuit also seeks damages for infringement, a judgment of willful infringement that could triple those damages and legal costs.
Insulet said the settlement deal includes a release of all claims, a covenant not to sue and a license to the BD patents claimed in the lawsuit. The deal also includes a licensing deal for 1 of Insulet’s patents "relating to an environmental seal for a fluid delivery device," Insulet said. The lawsuit is expected to incur roughly $2 million in legal and other expenses on top of the $5 million settlement, according to a regulatory filing.
"Following the company’s payment of the settlement payment, the parties will promptly move to dismiss the pending lawsuit by BD," Insulet said.