Syneron Medical Ltd. (NSDQ:ELOS) agreed to pony up $31 million plus royalties for the rights to a pair of Palomar Medical Technologies (NSDQ:PMTI) patents for laser- and light-based hair removal technologies, ending a long-running legal battle.
Syneron inherited the imbroglio when it acquired Palomar’s Bay State rival, Candela Corp., for $65 million in January 2010. The case dates back to a pair of patents Burlington, Mass.-based Palomar licensed from Mass. General Hospital back in 1995 for light-based hair removal.
Palomar had accused Candela (and then Syneron) of willfully copying its technology. Today Syneron and Palomar announced a deal that will see Yokneam, Israel-based Syneron dish out $31 million in up-front cash for the rights to the two patents in the case. Syneron will also pay out royalties on sales of "consumer home-use lamp-based hair removal products," according to a press release.
The royalties are structured to deliver 5.0 percent "up to up to an undisclosed amount of cumulative sales," then 6.5 percent up to another secret milestone and 7.5 percent after that, according to the release. The deal also includes provisions for Palomar to license Syneron and Candela patents royalty-free. Forty percent of of all payments from the deal will go, in turn, to the General Hospital Corp., which owns Mass. General.
"Palomar pioneered the cosmetic light-based industry with the first high-powered laser hair removal system in 1997," Palomar president & CEO Joseph Caruso, said in prepared remarks. "Our intellectual property strategy has proved to be a valuable asset for our shareholders and we will continue to focus on expanding our intellectual property in the future."
“We are pleased to reach a mutually beneficial settlement that effectively ends the patent disputes between Syneron and Palomar," added Syneron CEO Louis Scafuri. "Syneron has a very strong balance sheet and we believe this fully paid-up license is a strategically beneficial utilization of our cash. It eliminates our exposure to continued legal liability in the matter, does not require any additional payments for professional hair removal systems, and supports our ongoing efforts to improve the company’s gross and operating margins.”
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Merge Healthcare Inc. (NSDQ:MRGE) is long party to a lawsuit filed by an insurance company looking to avoid paying out more than $2.5 million to cover a lawsuit filed against Merge subsidiary Amicas before the merger.
Amicas shareholders had filed a separate lawsuit looking to block a buyout by private equity firm Thoma Bravo LLC last year. When that deal fell apart and Merge managed to consummate its deal, the shareholders suit was dismissed – but not before the judge ordered Merge to pay nearly $3.2 million in legal fees and expenses.
Enter Carolina Casualty Insurance Co., Merge’s insurer, which filed a lawsuit against Merge and Amicas to get out of paying most of those fees.
But Judge Suzanne Conlon of the U.S. District Court for Northern Illinois is letting Merge escape the lawsuit, ruling that Merge has no legal rights under the contract Amicas inked with Carolina Casualty before the Merge acquisition.
- Caliper shareholders sue to block $600M PerkinElmer buyout
Shareholders of Caliper Life Sciences (NSDQ:CALP) are suing to block a $600 million buyout by PerkinElmer Inc. (NYSE:PKI).
Alleging that the $10.50-per-share bid is inadequate, investors led by plaintiff Betty Greenberg allege that the proposed deal doesn’t account for the 121 percent spike in CALP’s share price over the last year, according to Bloomberg.
The deal also blocks other potential suitors from upping the ante, according to the lawsuit, filed in the Delaware Chancery Court. Read more
- Saint-Gobain takes it to the Supremes
Saint-Gobain SA (ETR:OLG) wants the U.S. Supreme Court to review a $45 million judgment against it in a patent infringement case with Siemens AG (NYSE:SI).
The French industrial conglomerate filed a petition for a writ of certiorari from the Supremes, formally asking the court to review a U.S. Appeals Court for the Federal Circuit decision that it infringed patents owned by Siemens AG. The appeals court ruled that one of Saint-Gobain’s positron emission tomography scanner infringed the German giant’s patent for another PET device.
Saint Gobain claims the lower court erred in finding infringement based on the doctrine of equivalents and wants the Supreme Court’s nine justices to take up the matter. Read more