Advanced Medical Optics settles patent infringement suits with Alcon

Advanced Medical Optics has announced that it has reached a settlement with Alcon, Inc., Alcon Manufacturing, Ltd. and Alcon Laboratories, Inc., resolving all pending patent infringement lawsuits between the companies on technologies used in ophthalmic surgery.

Under the agreement, which has an effective date of June 30, 2006, Alcon will pay AMO a lump sum of $121 million. The parties agree to dismiss all existing patent litigation and not to sue on the patents at issue, including the use of multiple viscoelastics in one surgical procedure. In addition, each company is granted a license to the patents covering its existing phacoemulsification equipment features, which allows them to market their current products without the threat of litigation.

The settlement resolves four pending patent lawsuits between the companies, including the December 2003 complaint filed against Alcon in the U.S. District Court for the District of Delaware for infringement of two AMO phacoemulsification patents for which a judge upheld a May 2005 jury decision of infringement by Alcon. Alcon had subsequently filed an appeal and motion for a new trial in connection with this judgment.

"We invest substantial resources and energies to develop new ophthalmic technologies and are pleased to bring these legal matters to a swift and successful close for the benefit of our stockholders and customers," said Jim Mazzo, AMO chairman, president and chief executive officer.