Cochlear to pay massive US$280 million patent penalty

Hearing implant manufacturer Cochlear has been denied a rehearing of an appeal in a patent dispute which resulted in a massive penalty being awarded against the company.

The Sydney company has petitioned for a rehearing of a judgement in the US District Court which awarded US$268 million in patent infringement damages against Cochlear in a lawsuit filed by the Alfred E. Mann Foundation for Scientific Research and Advanced Bionics LLC.

Now, that judgement will become final on 26 May, 2020.

The court will enforce a payment of US$280 million, likely this financial year, which includes interest.

A decision in the US District Court is pending on AMF and AB’s application for further interest and court costs amounting to US$138 million.

Cochlear has made provision for these patent losses and recently completed an $880 million capital raising.

Picture: Cochlear

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