Medtronic to Pay $1.3 Billion to Patent Owner

(Minneapolis, MN, USA) has agreed to pay U.S$1.3 billion for substantially all of the intellectual property on spinal implant technologies developed by Gary K. Michelson, a doctor and inventor, and his company, Karlin Technology, Inc. (Los Angeles, CA, USA), as ordered by a federal jury. Some of the patents were initially acquired by Sofamor Danek, which was later acquired by Medtronic.

Medtronic will acquire technology-based tangible assets valued at around $800 million, related to the purchase of the intellectual property and license agreements. The balance of the purchase price, about $550 million, will be recorded by Medtronic as an expense in its four quarter of fiscal 2005. The agreement will also transfer to Medtronic ownership of all inventions related to the diagnosis and treatment of the spine conceived or acquired by either Dr. Michelson or Karlin Technology in the 15 years following the closing.

"The acquisition of this intellectual property allows Medtronic to expand its innovative portfolio of products for patients suffering from spinal disorders,” noted Michael DeMane, president of Medtronic's spinal businesses (Sofamore Danek). "The acquisition of these assets will also end our ongoing legal dispute with these parties and allow Medtronic to place its full focus on improving the lives of patients.”




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