Medical device maker NuVasive Inc. will pay rival Medtronic PLC $45 million to settle a long-standing patent fight related to spinal surgery technology, NuVasive said on Thursday.
The deal will end litigation that began in 2008 in federal court in California, the company said in a federal filing. The litigation led to a jury verdict finding both companies liable for patent infringement.
The companies will also put to rest any challenges to the validity of each other's patents at the U.S. Patent and Trademark Office, and both sides have agreed not to sue each other over patents related to spinal implants and nerve monitoring technology for seven years, NuVasive said.
"We are very pleased to have negotiated a mutually agreeable settlement that removes the ongoing burden of this litigation and provides for a framework for resolution of potential patent disputes in the future," NuVasive Chief Executive Gregory Lucier said in a statement.
Eric Epperson, a spokesman for Minnesota-run Medtronic, said, "We look forward to continue focusing our efforts on accelerating innovations that transform spine surgery and improve outcomes for more patients."
The patent fight included a couple of rounds at a federal appeals court and a brief trip to the U.S. Supreme Court.
It began when Warsaw Orthopedic Inc., a subsidiary of Medtronic, filed suit in 2008 against San Diego-based NuVasive for infringement of Medtronic's spinal implant and surgical method patents.
NuVasive countersued, accusing Medtronic of infringing its patent on technology that gives doctors a way to detect and avoid damaging spinal nerves during surgery.
A jury found both sides liable, awarding $101.2 million in damages to Medtronic, and $660,000 to NuVasive.
Last year, the U.S. Court of Appeals for the Federal Circuit, a specialized patent court, ordered a retrial on damages on Medtronic's patents. It had not yet taken place.
