Haemonetics Corporation (HAE) has recently filed a new lawsuit against Fenwal Inc. regarding the latter’s continued patent infringement with the release of its red cell collection kits. Fenwal allegedly modified its separation chamber to bypass Haemonetics’ patent. The court has issued an injunction prohibiting Fenwal from continuing to sell these infringed products after Dec 1, 2010.
The tussle between Haemonetics and Fenwal began early this year when a federal jury determined that Fenwal’s original collection kit infringes a Haemonetics patent and found Fenwal liable for payment of damages of over $15 million to Haemonetics. The United States District Court for the District of Massachusetts later ordered the product to be removed from the market by Dec 1, 2010. The court also ordered Fenwal to pay a 10% royalty based on the offending product’s sales.
Fenwal has not paid Haemonetics any damages till date. Furthermore, the royalties are being escrowed pending decision on Fenwal’s appeal to the United States Court of Appeals for the Federal Circuit. The decision on Fenwal’s appeal is not expected before late 2010, which indicates that Haemonetics will not get any royalty during that period.
The new lawsuit filed by Haemonetics seeks multiple damages from Fenwal for wilful infringement and a permanent injunction on sale of its patented products.
Haemonetics Corporation is the market leader in developing and manufacturing blood collection and processing technology. Haemonetics operates in a very competitive environment, for both manual and automated systems, which includes big players such as Baxter International Inc. (BAX), Abbott Laboratories (ABT) and Medtronic Inc. (MDT).
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