A Diagnostics & Imaging Week

Innogenetics (Gent, Belgium) reported that a jury in the U.S. District Court for the Western District of Wisconsin has ruled that Abbott Laboratories (Abbott Park, Illinois) willfully infringed Innogenetics U.S. Patent No. 5,846,704 (the ‘704 patent), covering a method of genotyping the Hepatitis C Virus (HCV).

Innogentics said that the verdict directs Abbott to pay Innogenetics $7 million for infringement damages to date. That award may be increased up to three times the $7 million amount because the jury determined willful infringement.

Innogenetics said it will seek an injunction against Abbott diagnostic products that infringe the ‘704 patent and pursue "other available remedies."

"This is a landmark victory for Innogenetics and possibly for other innovators like us out there," said Frank Morich, CEO of Innogenetics. "This win . . . provides compensation for this major infringement — but perhaps just as importantly it says that being a large, global company does not entitle you to willfully disregard intellectual property laws without consequence."

Innogenetics brought suit against Abbott in September 2005 alleging the infringement. Early this month, a jury returned a unanimous verdict that Innogenetics ‘704 patent was valid in all its aspects, a follow-on to determine damages and whether the infringement had been willful.

Innogenetics bills itself as a biopharmaceutical company building parallel businesses in specialty diagnostics and therapeutic vaccines, with 2005 revenues of EUR 48.6 million. Its Diagnostics Division develops specialty products covering infectious diseases, genetic testing and neurodegeneration.

In other court action: Hypertension Diagnostics (HDI, St. Paul, Minnesota) reported that the Minnesota State Court of Appeals has ruled against it in the matter of Charles F. Chesney, et. al. vs. Hypertension Diagnostics, Inc., et. al. The court upheld a previous ruling by the Hennepin County District Court, which granted Chesney and Julie Radosevich, former employees, $138,381.79 in cash and 714,286 shares of common stock that the company will have to register to be freely tradable.

HDI said it "sought but did not receive the return of certain property from Chesney and Radosevich as part of the mediation agreement," and that it has decided not to appeal the ruling to the Minnesota State Supreme Court.

It said that if Chesney and Radosevich were to quickly liquidate the shares issued to them in the settlement, these sales would have an adverse effect on its stock price and might impact its ability to raise equity in the future. It also said that attempts to negotiate a cash settlement in lieu of the 714,286 shares have been unsuccessful.