McKesson, TriZetto settle healthcare informatics patent dispute

Healthcare informatics developer McKesson Information Solutions has entered into a patent litigation settlement deal with application service provider (ASP) technology developer The TriZetto Group.

Under the terms of the agreement, TriZetto will pay a one-time royalty fee of $15 million for a license covering the use of McKesson's U.S. Patent No. 5,253,164. The deal covers clinical editing functionality included in TriZetto's Facets, QicLink, and ClaimFacts software products, which McKesson alleged infringed on its patent.

TriZetto has also agreed to pay McKesson a royalty fee of 5% of the net licensing revenue received from new sales of Facets and QicLink containing its clinical editing functionality. In addition, TriZetto will no longer include its clinical editing functionality in versions of Facets sold to new customers with more than 100,000 members, beginning November 1 this year. In these cases, TriZetto said new customers may choose their clinical editing solution from available third-party providers, including McKesson.

By AuntMinnie.com staff writers
September 12, 2006

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