Varian Medical (NYSE:VAR) said it settled its patent infringement beef with the University of Pittsburgh for $35 million, after a federal appeals court overturned a portion of the $100 million award Pitt won in 2012.
Pitt sued in 2007, alleging infringement of a patent by Varian’s Real-time Position Management technology.
Yesterday the U.S. Court of Appeals for the Federal Circuit affirmed a lower court’s ruling that Varian infringed 1 claim of a patent for an "Apparatus responsive to movement of a patient during treatment/diagnosis," known as the ‘554 patent.
But the appeals court reversed the lower court’s finding of willful infringement and said Judge Arthur Schwab of the U.S. District Court for Western Pennsylvania was wrong in his construction of a 2nd claim, "which consequently requires that the damages award associated with that claim be vacated and remanded," according to court documents. The appeals court also affirmed Schwab’s damages award for infringement of a 3rd claim, according to the documents.
Varian said it had already agreed to pay about $35 million to settle the case, contingent on the Federal Circuit ruling.
"Under this pre-negotiated settlement, Varian will not owe any future royalty payments associated with the sale of Varian products that incorporate the patent at issue. Varian customers will continue to have full use of these products," according to a press release. "A portion of the settlement will be expensed in the 2nd [fiscal] quarter with the balance to be recorded as a prepaid royalty in the 3rd quarter."