Thursday 21st February 2019
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Fisher & Paykel Healthcare and ResMed have agreed to settle all outstanding patent infringement disputes with no payment or admission of liability by either side after racking up millions of dollars in legal fees in a fight that spanned the globe
In a joint statement, the companies said all ongoing infringement proceedings against named products will be dismissed and each party will bear its own attorney fees and costs incurred in global proceedings.
All other terms remain confidential, they said. As a result of the settlement, there will be no further infringement proceedings against ResMed or F&P Healthcare products.
F&P Healthcare has been locked in patent disputes spanning the US, UK, Europe, New Zealand and Australia with rival ResMed since 2016. The Kiwi breathing mask manufacturer spent $15.6 million on litigation in the year ended March 31, down from $20.7 million a year earlier. Litigation cost it about $7.7 million in the six months through September last year.
Separately, F&P Healthcare said the settlement will not have a material impact on its net profit after tax guidance for the 2019 financial year "given the proximity of the settlement to the end of the company’s financial year and the legal fees expected to be incurred to withdraw the pending infringement cases," it said.
In November, the company reiterated its full-year earnings forecast at $205 million to $210 million. At the time, managing director Lewis Gradon noted the “lumpy” nature of legal action, and the fact the US International Trade Commission action and a Federal Court action in Australia would cause “big spending” by the company later in the second half.
F&P Healthcare shares last traded at $13.38 and are up 3.9 percent over the past 12 months.
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