Conformis and Zimmer Biomet entered an agreement May 22 to resolve all existing patent disputes between the device companies, according to an SEC filing.
Five things to know:
1. The patent disputes centered on Conformis' knee and hip replacement products and Zimmer's knee, shoulder and hip replacement products.
2. The battle began in November 2019, when Zimmer filed a complaint against Conformis, alleging patent infringement. Conformis responded by denying the allegations and filing counterclaims of its own, including that Zimmer infringed upon Conformis' patents.
3. The companies' May 22 settlement and license agreement dismisses all outstanding litigation and prevents future litigation over the products in question.
4. Conformis and Zimmer also agreed to cross-license their technologies. In exchange for $9.6 million, which Zimmer is required to pay by Jan. 15, 2021, Conformis awarded Zimmer "a royalty-free, non-exclusive, worldwide license to certain patents" for knee, shoulder and hip replacement instruments.
5. Zimmer is required to pay $3.5 million of the total amount within 30 days. Conformis has no financial obligation under the settlement.
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