Philips to Appeal $467 Million Patent VerdictPhilips to Appeal $467 Million Patent Verdict

Royal Philips said Thursday that it will appeal a U.S. federal jury's decision to award Irvine, CA-based Masimo Corp. $467 million in a patent infringement case against the Dutch multinational.The federal jury in Delaware found Masimo patents are infringed by Philips products incorporating a noninvasive pulse oximetry measurement technology that measures the level of oxygen saturation in a patient's blood."We are very disappointed in the verdict of the jury and surprised by the magnitude of the proposed award," Frans van Houten, CEO Royal Philips, said in a news release. "Philips intends to pursue all avenues of appeal of this verdict at both the District and Appellate courts in the U.S."For now, Philips officials plan to include the $467 million as an exceptional charge in third quarter 2014 results. The company's stock fell 2.5% in value on the New York Stock Exchange on Wednesday, the same day the jury verdict was announced, and it was down another 1.2%, to $30.65 per share, near the close of trading Thursday.The jury verdict news comes more than a week after Philips announced plans to separate its healthcare and lighting businesses, with the possibility of spinning off the new lighting company with an IPO. The company intends to combine its existing healthcare and consumer lifestyle businesses into one entity known as HealthTech, the company said in a statement.Philips has the seventh largest medtech business in the world, with nearly $14 billion in annual sales, according to Qmed's sister publication MD+DI.

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Chris Newmarker is senior editor of Qmed and MPMN. Follow him on Twitter at @newmarker.

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