By Tess Stynes
NuVasive Inc. said a federal appeals court panel overturned a
roughly $102 million jury award to medical device maker Medtronic
PLC in a long-running patent infringement dispute.
The company, which focuses on surgical products and procedures
for the spine, also said that absent any further appeals the case
will be returned to a district court to determine an award based on
a reasonable royalty.
In a statement on Tuesday, Medtronic said the company is pleased
the U.S. appeals court upheld the jury's original finding that
NuVasive's devices infringed on its patents. Medtronic said it
remains "confident that the retrial will return an award that is
appropriate to the damages we are seeking in this case."
NuVasive Chairman and Chief Executive Alex Lukianov said: "By
limiting the damages to only a reasonable royalty, we believe our
overall exposure in this phase of the litigation has been reduced
from the current amount we have accrued."
A jury made the damages award to Medtronic in a September 2011
verdict in the first phase of litigation between NuVasive and
Medtronic. The jury found that NuVasive had violated three of
Medtronic's spinal-implant patents. The jury found that NuVasive's
CoRoent XL implants, MaXcess II and III retractors and Helix and
Helix mini anterior cervical plates infringed on Medtronic
patents.
On Tuesday, NuVasive said the appeals court panel decision
upheld the jury's finding of liability, but determined the damage
award was improper because Medtronic isn't permitted to recover
damages for lost profit or for the sale of conveyed products.
Write to Tess Stynes at tess.stynes@wsj.com
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