Jury Returns Defense Verdict for Fresenius in $87 Mil Trial

IPFrontline.com
date: Wednesday, July 19, 2006

San Diego, CA, (July 18, 2006) – An Oakland, California jury has agreed with Fresenius Medical Care (NYSE: FMS) that the company did not infringe any valid claims of four Baxter International's (NYSE:BAX) patents at issue by returning a complete verdict for the defense. 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 yesterday.

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 U.S.A. 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. (NYSE:BAX) 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. The company has approximately 47,000 employees and sales of $9.8 billion (2005).

"We are very pleased with the jury's verdict for Fresenius," says 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. The law affirm has 10 offices and 380 attorneys throughout the U.S. and is internationally known for its IP litigation successes.

For more information about Fresenius, visit http://www.fmc-ag.com.

For more information about Fish & Richardson, visit http://www.fr.com.