US Court Overturns Patent Rulings Against Cochlear

SYDNEY--Hearing implant maker Cochlear Ltd. (COH.AU) won a court victory in the U.S. that could allow it to partially recoup a US$131.2 million damages payment.

The Australian company said a judge in the Los Angeles district court ruled that three-out-of-four patent claims that a jury had previously found Cochlear had infringed upon were invalid.

The judge, however, upheld the jury's verdict of "direct and contributory" infringement on the one remaining claim, although the jury's verdict of "wilful" infringement was also overturned.

Cochlear continued to deny it breached any patents and said it would consider appealing any subsequent damages ruling to the U.S. Court of Appeals.

"While we appreciate the judge's thorough and detailed analysis of this case, we strongly believe the facts and law do not support the jury finding of infringement of the one remaining patent claim against Cochlear," Chris Roberts, the company's chief executive, said in a statement.

The lawsuit was brought by the Alfred E. Mann Foundation for Scientific Research and rival implant maker Advanced Bionics LLC., a unit of Sonova Holding AG (SOON.VX)

The judge overturned the full US$131.2 million in damages awarded by the jury.

A new trial on damages will be held at a future date, Cochlear said.

Write to Ross Kelly at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires