Edwards and Medtronic Settle Global Transcatheter Valve Litigation

May 20, 2014—Edwards Lifesciences and Medtronic, Inc. announced an agreement to settle all outstanding patent litigation between the two companies, including cases related to transcatheter heart valves. The agreement will result in the dismissal of all pending cases or appeals in courts and patent offices worldwide and includes a provision that the parties will not litigate patent disputes with each other in the field of transcatheter valves for the 8-year duration of the agreement.

According to Edwards and Medtronic, the settlement includes a patent cross-license agreement under which Medtronic will make a one-time payment to Edwards of $750 million. Additionally, Medtronic will pay Edwards quarterly license royalty payments through April 2022. These payments will be based on a percentage of Medtronic CoreValve sales, subject to a minimum annual payment of $40 million.

Medtronic noted that in the agreement, neither Medtronic nor Edwards have admitted that their products infringe any patents or that any patents are invalid.

Edwards advised that it will contribute $50 million from the settlement to the Edwards Lifesciences Foundation to support efforts to improve patient care, raise disease awareness, and educate clinicians, such as through its Every Heartbeat Matters philanthropic program.