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.