Cochlear to appeal $268m patent fine

Company News

by Rachael Jones

Medical device company Cochlear (ASX:COH) are set to appeal a case they lost in the US in the patent infringement lawsuit by the Alfred E. Mann Foundation for Scientific Research (“AMF”) and Advanced Bionics LLC (“AB”).

Damages of $US268 million have been awarded against Cochlear. An appeal could take up to two years.

The company established a provision in FY14 based on the view of Cochlear’s independent damages expert’s assessment of the liability that could result from the dispute. They set aside a provision of $21.3 million in case they lost the case. This is now under review.

As the patent at issue in the litigation has expired, the judgment will not disrupt Cochlear’s business or customers in the United States.

Cochlear (ASX:COH) shares are trading 2.33 per cent lower to $175.38.

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.