NuVasive: Court Overturns $102 Million Award to Medtronic--Update

By Tess Stynes 

NuVasive Inc. said a federal appeals court panel overturned a roughly $102 million jury award to medical device maker Medtronic PLC in a long-running patent infringement dispute.

The company, which focuses on surgical products and procedures for the spine, also said that absent any further appeals the case will be returned to a district court to determine an award based on a reasonable royalty.

In a statement on Tuesday, Medtronic said the company is pleased the U.S. appeals court upheld the jury's original finding that NuVasive's devices infringed on its patents. Medtronic said it remains "confident that the retrial will return an award that is appropriate to the damages we are seeking in this case."

NuVasive Chairman and Chief Executive Alex Lukianov said: "By limiting the damages to only a reasonable royalty, we believe our overall exposure in this phase of the litigation has been reduced from the current amount we have accrued."

A jury made the damages award to Medtronic in a September 2011 verdict in the first phase of litigation between NuVasive and Medtronic. The jury found that NuVasive had violated three of Medtronic's spinal-implant patents. The jury found that NuVasive's CoRoent XL implants, MaXcess II and III retractors and Helix and Helix mini anterior cervical plates infringed on Medtronic patents.

On Tuesday, NuVasive said the appeals court panel decision upheld the jury's finding of liability, but determined the damage award was improper because Medtronic isn't permitted to recover damages for lost profit or for the sale of conveyed products.

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