Radiation therapy firm Varian Medical Systems has settled a patent suit with the University of Pittsburgh.
Varian will pay the university approximately $35 million to settle the dispute. The payout will be recorded in the financial results for the company's second and third quarters of fiscal 2014.
In 2007, the University of Pittsburgh brought a patent infringement lawsuit against Varian regarding the company's real-time position management technology, which is used to account for breathing motion during delivery of radiation therapy, according to Varian. In 2012, the U.S. District Court for the Western District of Pennsylvania ruled against the firm, ordering payment of approximately $102 million in damages, enhanced damages, interest, and fees, as well as ongoing royalty payments. Varian challenged that ruling in the U.S. Court of Appeals for the Federal Circuit, which published its opinion on April 10.
During the second quarter of fiscal 2014, Varian and the University of Pittsburgh reached an agreement dependent upon the April 10 ruling. Under terms of this settlement, Varian will not owe any future royalty payments associated with the sale of Varian products that incorporate the patent at issue, and Varian customers will continue to have full use of these products, the company said.
