In an announcement Monday, a U.S. district court has ordered Australian hearing implant maker, Cochlear, to pay $268.1 million in damages in a patent infringement case brought against the company filed by the Alfred E. Mann Foundation for Scientific Research and Advanced Bionics LLC.
Following the announcement, the company’s stock was trading down nearly four percent by mid-afternoon on Monday.
Cochlear Plans to Appeal Judgement
Following the ruling, Cochlear said it would be filing an appeal. Further, the company said the infringement case “relates to a long expired patent and has no ongoing impact on the company’s business”.
“We are surprised by the decision and do not agree with the reasons given by the judge. We will continue to defend this case” –Dig Howitt, Cochlear CEO
According to a story in the Sydney Morning Herald detailing the case, it was revealed during the trial that the allegedly infringing products and processes generated around $1.8 billion (USD) in revenues for the company, with gross profit margins of between 75% and 92%.
