Friday, August 29, 2008

Court cuts Boston Scientific patent case payment from $250M to $19M

By Mass High Tech Staff

Boston Scientific Corp. got some good news before the long holiday weekend, as the U.S. District Court of Marshall, Texas, found two patents of Medtronic Inc. unenforceable, and reduced the damages from the previous ruling against the Natick med tech company from $250 million to $19 million.

According to officials at Boston Scientific Corp. (NYSE:BSX), the jury had previously found that some Boston Scientific balloon catheters and stent delivery systems infringed three patents held by Minnesota-based Medtronic (NYSE:MDT) and that the patents were valid. The new court ruling found two of those patents unenforceable because of certain conduct of Medtronic during the prosecution of the patents before the United States Patent and Trademark Office. Specific details of that conduct were not disclosed.

 Medtronic and Boston Scientific had already agreed to reduce the jury verdict to approximately $186 million after a prior decision in the case by the court. Boston Scientific says it plans to appeal the $19 million damage award to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C.

Last week, Boston Scientific said it is shutting downs its factory in Tullamore, County Offaly, Ireland, and cutting 240 jobs next year. The planned shutdown stems from Boston Scientific’s fluid management business being bought by Avista Capital Partners in February for $425 million.

Boston Scientific reported a net loss of $495 million on revenue of $8.4 billion for 2007.