Medtronic, Johnson and Johnson Reach Agreement on Royalty Disputes
May 10, 2009 - Medtronic Inc. Friday announced the settlement of all royalty disputes with Johnson and Johnson (J&J) that concern Medtronic’s licensed use of the Palmaz, Schatz and Pinchuk patents relating to coronary angioplasty stent design and balloon material patents.
The agreement ends all current and potential disputes between the two parties under their 1997 settlement and license agreement. Other disputes between the parties are unaffected by this settlement, Medtronic said.
“Resolving these disputes allows us to focus our resources on the development of new products that will improve the quality of care for people with cardiovascular disease,” said Scott Ward, president of the CardioVascular business and senior vice president at Medtronic.
Medtronic paid J&J $270 million for all alleged royalty claims against its products under a 1997 settlement and license agreement between the parties. Medtronic will reflect the settlement as a one-time charge in its fourth fiscal quarter, ending in April 2009.
For more information: www.medtronic.com