Philips Electronics to appeal ruling in $467 million patent lawsuit
(Reuters) - Dutch healthcare equipment company Philips said on Thursday it would appeal against a U.S court ruling ordering it to pay $466.8 million in compensation to Masimo Corp for infringing two patents.
The patents related to technology used to help measure blood oxygen and track pulse rates.
"We are very disappointed in the verdict of the jury and surprised by the magnitude of the proposed award," Philips Chief Executive Officer Frans van Houten said.
"Philips intends to pursue all avenues of appeal of this verdict at both the District and Appellate courts in the US."
Philips said it would report the compensation award as an exceptional charge to the earnings before interest, tax and amortisation line of its third-quarter healthcare sector results.
Shares of Masimo closed 12.9 percent higher after the ruling on Wednesday, rising $2.74 to $24.02 on the Nasdaq.
Jurors in Wilmington, Delaware needed less than a day of deliberations before ruling in favour of Irvine, California-based Masimo, following a two-week trial.
They also said Philips, a unit of Amsterdam-based Koninklijke Philips NV, did not show it more likely than not that Masimo had infringed one of its own patents.
The case, which began in 2009, concerned technology for pulse oximetry, a non-invasive procedure to measure the level of oxygen saturation in a patient's blood. Continued...