Medinol to pay Boston Scientific $104m compensation

Boston Scientific is believed to have sold Medinol stents that infringed a Johnson & Johnson patent.

Israeli stent company Medinol Ltd. is to pay Boston Scientific Inc. (NYSE: BSX) $104 million compensation ($77 million after tax) according to papers filed with the US Securities Exchange Commission (SEC).

The reason for the payment is unclear but the belief is that Boston Scientific sold Medinol's stents and competitor Johnson & Johnson claimed compensation from Boston Scientific on the grounds that the stents breached its patent.

The two companies have a long history of disputes. In 2005 a US court ordered Boston Scientific to pay Medinol $750 million compensation following claims that Boston Scientific had stolen its intellectual property and copied its stents. This was the largest amount that a company has ever been ordered by a court to pay an Israeli company.

Published by Globes, Israel business news - www.globes-online.com - on January 11, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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