Australia-based healthcare group Cochlear Limited (ASX:COH) on 15 December 2020, shared that the United States Supreme Court has rejected Cochlear’s appeal for re-evaluation of the US Federal Circuit’s decision backing a judgement of US$280 million in patent infringement damages case against Cochlear in a litigation filed by two US based firms - Alfred E. Mann Foundation (AMF) and Advanced Bionics LLC (AB).
This was the final appeal that the hearing implant company COH could have made against the judgement.
As per the ASX release, Cochlear paid US$280 million Judgement amount to AMF and AB in FY20. Also, the Company agreed to pay $75 million in attorneys’ fees along with $268 million in damages it was asked to pay to both the US companies.
It should be noted that the Mann Foundation had filed the original patent infringement suit in the year 2007 while, Advanced Bionics got connected later on.
In January 2014, a panel of judges in the US District Court said that COH violated both patents and granted $131.2 million for the losses.
Then, in April 2015, the jury removed the damages penalty and ordered a new proceeding, invalidating three of four claims in the 2 patents.
Then, a federal court reversed Cochlear’s victory in a way and sent the case back to a district court for a re-evaluation in November 2016.
However, all this had no major impact over the stock price on 15 December 2020.
Meanwhile, the COH stock was noted trading at $197.170, up 0.142% with market capitalisation of 12.94 billion at 2:46 PM AEDT.