Alisanos LLC accused Medtronic (NYSE:MDT) of poaching the technology behind its Octopus Evolution AS device after a co-development deal between the 2 medical device companies fell through, according to a patent infringement lawsuit filed in the U.S. District Court for Southern Florida.
The suit accuses Fridley, Minn.-based Medtronic of bailing on a deal to work on a through-port heart stabilization system covered by an Alisanos patent called the ‘573 patent, after a corporate predecessor of the latter called Medcanica shared its intellectual property as part of the development deal, according to court documents.
The deal called for Medtronic to a series of payments worth a total of $62.5 million, in return for an option on an ownership interest in the Alisanos predecessor. But Medtronic bailed after making 2 payments totalling $1 million, according to the documents.
"While the relationship between Medtronic and Medcanica started on good terms it quickly soured," according to the lawsuit. "However, when Medcanica completed the 3rd milestone, Medtronic balked at meeting its corresponding obligation under the agreement and refused to make the required payment. Rather than pay the $750,000 as was required under the agreement, Medtronic took the 1st step toward terminating the parties’ agreement. This decision was made only after Medtronic had gained an intimate knowledge of not only what would become the patented technology’s design on paper, but also how it could be developed in practice. Claiming surprise by the fast pace of Medcanica’s progress in developing the cutting edge products, Medtronic expressed a desire to renegotiate the agreement and refused to make the third milestone payment."
In the meantime, the suit alleges, "Medtronic was developing a surgical device that is remarkably similar to some of the devices designed and developed by Medcanica. One such device is the Octopus Evolution AS tissue stabilizer device," according to the lawsuit. "The similarity of the Octopus Evolution AS device and the surgical devices developed by Medcanica are such, that Alisanos contends that the Octopus Evolution AS device infringes at least one claim of the ‘573 patent. The similarities are so great that Alisanos contends that any other Medtronic devices that are similar to the Octopus Evolution AS will likewise infringe one or more claims of the ‘573 patent."
Alisanos is seeking a judgment of infringement, damages, triple damages for willful infringement, legal fees and ore- and post-judgment interest.
In October 2012, Alisanos sued Intuitive Surgical (NSDQ:ISRG) along similar grounds, alleging that Intutive’s EndoWrist Stabilizer infringes the ‘573 patent.