The Federal Circuit overturned a previous court's decision in patent litigation between NuVasive and Medtronic.
The original jury verdict in the first phase of the litigation awarded NuVasive $660,000 in monetary damages and $102 million to Medtronic, which included lost profits, ancillary sale products and royalties. Now NuVasive has won an appeal.
Here are five things to know:
1. The decision was based on ongoing patent lawsuits with Medtronic Sofamor Danek and Warsaw Orthopedic. The jury originally ruled three patents at issue in the appeal were infringed upon.
2. The most recent ruling, on March 2, 2015, unanimously upheld the first jury's finding of liability as to all patents, but overturned the damage award against NuvVasive as "improper."
3. The Court of Appeals held that the damages awarded were "erroneous" since Medicare isn't allowed to recover damages for lost profits or for the sale of convoyed products.
4. The case is now headed back to the District Court for further proceedings to determine the proper damage award based on reasonable royalty only.
5. The retrial could occur later in 2015, although the exact date is hard to predict.
"We are pleased with today's legal ruling," said NuVasive Chairman and CEO Alex Lukianov. "This provides greater clarity on the process moving forward and affirms our view that Medtronic had been awarded an excessive amount of damages. By limiting the damages to only a reasonable royalty, we believe our overall exposure in the phrase of the litigation has been reduced from the current amount we have accrued. We look forward to the upcoming retrial."