Knobbe Martens Olson & Bear LLP - IP Litigation, Masimo Corporation v. Nellcor Puritan Bennett, Inc. and Mallinckrodt, Inc

Masimo Corporation v. Nellcor Puritan Bennett, Inc. and Mallinckrodt, Inc., 00-CV-06506 MRP (C.D. Cal. March 2004)

The firm successfully concluded a five-week trial resulting in a Los Angeles federal jury awarding $134.5 million to Masimo Corp. The award is one of the largest verdicts ever in a medical device patent infringement lawsuit. The jury found Nellcor Puritan Bennett, a division of Tyco Healthcare, had willfully infringed all four of Masimo's asserted patents. The patents relate to Masimo's pulse oximeters, medical devices that allow clinicians to obtain accurate oxygen saturation and pulse rate values despite interference caused by patient motion. The jury also rejected each of Nellcor's invalidity defenses. In addition, the jury rejected Nellcor's claim that Masimo's sensors and connector cables infringe one of Nellcor's patents. Before trial, the Court held on summary judgment that Masimo did not infringe three other Nellcor patents. In January 2006, Masimo settled all existing patent litigation with Nellcor. Under the settlement, Nellcor paid Masimo $265 million for damages through January 31, 2006. In addition, Nellcor made an advance royalty payment of $65 million related to sales of Nellcor's new products during the remainder of calendar year 2006. After January 31, 2006, Nellcor will no longer ship its oximeters that were found to infringe in the lawsuit, but will continue to provide service and sensors for previously sold products. Finally, Masimo has granted Nellcor the right to sell Nellcor's new line of pulse oximetry products in exchange for an on-going royalty. Published prior decisions at 254 F. Supp. 2d 1140 (C.D. Cal. 2003); 292 F. Supp. 2d 1201 (C.D. Cal 2003); 300 F. Supp. 2d 923 (C.D. Cal 2004).