Medtronic has settled all royalty disputes with Johnson and Johnson (J &J) for $270 million, which concern its licensed use of the Palmaz, Schatz and Pinchuk stent patents.
The Minneapolis-based Medtronic said the agreement ends all current and potential disputes between the two parties under their 1997 settlement and license agreement relating to coronary angioplasty stent design and balloon material patents. The two companies had six arbitrations pending in the dispute, all of which were settled with Friday's agreement. Other disputes between the parties are unaffected by this settlement.
"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 the New Brunswick, N.J.-based J &J $270 million in satisfaction of all alleged royalty claims against its products under a 1997 settlement and license agreement between the parties. Medtronic said it will reflect the settlement as a one-time charge in its fourth fiscal quarter, ending in April.