VNUS Announces Settlement of Patent Litigation With AngioDynamics and Vascular Solutions

Vnus Medical Technologies Inc. will receive about $10 million upfront as part of a patent infringement lawsuit settlement.

San Jose-based Vnus said it entered into the agreement with  AngioDynamics Inc. and Vascular Solutions Inc. that resolves a suit filed in 2005.

Vnus will grant to the companies a non-exclusive, non-sublicensable patent license that covers certain products such as disposable endovenous laser fiber kits, laser fibers, and lasers used in the field of endovenous laser ablation.

As a part of the agreement, licensees AngioDynamics and Vascular Solutions stipulated that the Vnus patents-in-suit are valid, enforceable, and were infringed by the licensees. The license requires per unit royalty payments for endovenous laser products sold or shipped in the United States until Sept. 11, 2017.

New York-based AngioDynamics and Minneapolis-based Vascular Solutions have agreed to an upfront payment of $6.8 and $3.1 million respectively for past infringement.

Brian Farley, Vnus president and CEO, said the agreement “validates the importance and value of our intellectual property in the field of endovenous ablation. It brings to VNUS a favorable result in the enforcement of our endovenous vein ablation patents and is expected to produce a forward royalty stream that allows VNUS to financially benefit from endovenous laser ablation products sold into the vein ablation market over the next nine years.”

Farley added, “We expect the financial and other terms of our settlement agreement will also facilitate productive dialog with others who practice the patented methods.”

SOURCE: Silicon Valley/San Jose Business Journal