Boston Sci to Pay J&J for Patent Infringement

Boston Scientific has agreed to pay $1.7 billion to Johnson & Johnson’s Cordis subsidiary to settle the long-running legal battle over three patents related to the companies' stent businesses.

February 3, 2010

1 Min Read
Boston Sci to Pay J&J for Patent Infringement

In 2003 Johnson & Johnson sued Boston Scientific for allegedly infringing two stent patents. The patents covered intellectual property related to stents. In a statement announcing the settlement, Boston Scientific noted that during the past year, it has settled 17 lawsuits with Johnson & Johnson, other rival companies or the federal government. Ray Elliott, Boston Scientific’s chief executive officer, said the settlement reflected the company’s recent concerted effort to mitigate risk, including litigation risk. Under the settlement, Boston Scientific will immediately pay New Brunswick-based Johnson & Johnson $1 billion and pay out the balance of the settlement on or before the first week of January, 2011. The company plans to post a $745 million letter of credit to cover the balance of the settlement and interest. According to The Star-Ledger, Tao Levy, a medical device industry analyst with Deutche Bank, said Johnson & Johnson typically uses such settlement payments to make an acquisition. When Boston paid out several hundred million to J&J last year, the company bought Acclarent, a privately held medical technology company.

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