What does everyone think about FMC losing its patent suit with Baxter over 2008K machines?

Heres the article from Reuters.

FMC loses key dialysis machine patent suit in U.S.
Sat Apr 5, 2008 12:27pm EDT

FRANKFURT, April 5 (Reuters) - Fresenius Medical Care (FMEG.DE: Quote, Profile, Research) has been banned from making, using or selling a key dialysis machine in the United States after losing a patent case to Baxter International (BAX.N: Quote, Profile, Research), Baxter's lawyers said.

"The U.S. District Court for the Northern District of California today issued opinions permanently enjoining Fresenius from manufacturing its flagship product, affirming it infringes on Baxter's technology, and awarding damages to Baxter," law firm Bell, Boyd & Lloyd said in a statement on Friday night.

The order applies to FMC's 2008K haemodialysis machines and takes effect on Jan. 1, 2009. The judge also ordered FMC to pay royalties of 10 percent on each machine sold until then and 7 percent on all disposable products used with the machines.

FMC was not reachable by Reuters on Saturday.

FMC makes about half of all the dialysis machines sold in the world. It made $6.6 billion in revenues in North America last year, more than two-thirds of its total sales.

It sells different haemodialysis machines in Europe, which were not part of the U.S. case, a spokesman for Bell, Boyd & Lloyd said on Saturday. (Reporting by Georgina Prodhan; editing by James Jukwey)

I don't think there is anyone here that doesn't know my feelings about Fresenius so naturally I'm glad to hear it. Fresenius has seen this coming since 2003 when they failed to prove Baxters patents were invalid. Because of that I think the granting of royalties were justified and I'm actually surprised it wasn't higher.

Chuck

It will be interesting to see what happens as far as parts and support for the existing K machines. There will probably be appeals to this ruling also, and who knows how far and how long those could go on for. I wonder if the price of K machines is going up effective Monday, 4/7/08? And also including the disposable supplies from Fresenius? I think I hear Braun's, Rockwell's, and Medisystem's phones ringing right now.

Wow - I just read the news release. This includes current incenter machines and the BabyK for home? I knew about the BabyK's but didn't know anything about existing 2008K's - that's all FMC uses for their clinics! Wow again! Where have I been?

Does anyone know what patents were involved in this? Did it include maybe just the touch screen display? Or did it include something that was also used on the H machines? How would any bean counter know if you are buying disposable supplies like blood lines and dialysate for use on a K machine or an H or even a D or E machine? There should be a lot of calls tommorrow to the Fresenius Sales Reps too. And Fresenius' stock was doing so well recently! I'll bet it tanks tommorrow.

This has been ongoing since 2003. Fresenius has won some rounds and Baxter has won a few. This is just the latest.

I find it hard to believe that the dialysis machine in use in nearly 90% of the market is simply just going to 'go away'. It's all about money, Fresenius will either file an appeal to lift the injunction, or come to a settlement with Baxter.

Hate to see the patients and employees affected by this ....

there,s a new price list for parts. coming very very soooooooon.

A possibility of Fresenius going back to the the reuse of lines / dialyzers???

how crooked is that? shame on them.

Where did the original post get their information?


AGIPNEWS3073


ag-IP-news
Fish & Richardson Wins Jury Verdict for Fresenius


REDWOOD CITY, CA - An Oakland, California jury has agreed with Fresenius Medical Care that the company did not infringe any valid claims of four Baxter International's patents at issue by returning a complete verdict for the defense.

A Wednesday press release by Fish & Richardson stated that Baxter International was seeking $87 million in damages from Fresenius for patent infringement associated with the "Fresenius 2008K" hemodialysis machine and an injunction barring Fresenius from continued selling of the machine. The court entered the judgment in the case on July 18.

Fresenius was represented at trial by Fish & Richardson principals Juanita Brooks and Tom Melsheimer.

Fresenius is the world's largest integrated provider of products and services for individuals with chronic kidney failure. Based in Massachusetts, Fresenius Medical Care USA develops, manufactures, uses and sells hemodialysis machines called the "Fresenius 2008K" and equipment used in dialysis. In fiscal year 2005, Fresenius provided 13.5 million dialysis treatments in 1,155 clinics in North America. In addition to manufacturing, using and selling dialysis machines, Fresenius sells disposable products needed in hemodialysis.

Baxter International Inc. claimed that Fresenius infringed the Baxter patents-in-suit by making, selling and offering for sale the Fresenius 2008K in the United States. Baxter is a global healthcare company.

"We are very pleased with the jury's verdict for Fresenius," said Brooks. "It was an extremely complicated case involving multiple complaints, cross complaints and advanced technological issues. The bottom line is, the jury understood that Baxter's patents should never have been issued and that Baxter was due no compensation."

Baxter sought a royalty totaling $87 million from the revenues associated with Fresenius’ sales, including the 2008K and sales of disposables such as dialyzers and blood lines, as well as an injunction against Fresenius' making, selling, or offering for sale the 2008K. A verdict for Baxter would have had a significant impact on Fresenius as the 2008K is the leading hemodialysis machine sold by the company.

After a seven-day trial in Oakland, CA, the jury deliberated less than one full day and found that all asserted claims were invalid based on obviousness and several invalid based on anticipation. The jury also found that Baxter had not proven infringement of the two claims where infringement still remained an issue.

In addition to Brooks and Melsheimer, John Farrell, Michael Florey and Matt Samuel, all of Fish & Richardson, rounded out the trial team.

Fish & Richardson P.C., a US law firm with over 350 lawyers in ten offices allocated in different US cities, is one of the largest firms practicing intellectual property, litigation, and corporate law.

alatech,

The link was posted here on RenalWeb over the weekend. What you pasted into your post was an old story that had been overturned. Here is the link for the history of the suit...Baxter vs Fresenius Lawsuit History

Chuck

The patent infringement claim involved the K machine touch screen interface. Baxter filed for a new trial after the 2006 jury verdict went against Baxter, and now the Federal District Court in Northern California has denied the request for a new trial and also overturned the jury verdict and ruled in favor of Baxter. The court established the guidelines for damages, and delayed the injunction to cease manufacturing the K machine until January of 2009. And of course Fresenius is filing an appeal to this. Fresenius has issued a staement which is available from the Home Page here at Renal Web. That statement has not been posted at the fmcna website in their press release section yet, but it probably will be soon.

i believe this is over the touch screen. Fresenius isn't the only one that has one and I doubt much of anything will come of this.

Chuck,

Your correct I didn't look at the date on the article that I read, my bad.