Cynosure Announces Successful Settlement in Patent Lawsuit Against CoolTouch, Inc.
February 09 2010 - 7:55AM
PR Newswire (US)
CoolTouch Acknowledges Infringement and Validity of Key Laser
Lipolysis Patent; Cynosure to Receive Royalties on Past and Future
Sales of Lipolysis Products WESTFORD, Mass., Feb. 9
/PRNewswire-FirstCall/ -- Cynosure, Inc. (NASDAQ: CYNO), developer
of the award-winning Smartlipo(TM) LaserBodySculpting(SM) procedure
for minimally invasive removal of fat, and its largest shareholder,
El.En. S.p.A, today announced a settlement of their patent
infringement lawsuit against CoolTouch, Inc. Cynosure and El.En.
alleged that CoolTouch's 1320 nm CoolLipo(TM) laser system
infringed on El.En.'s U.S. Patent No. 6,206,873 (the 873 patent)
licensed to Cynosure, which covers laser technology to remove
subcutaneous fat. Under the terms of the settlement, CoolTouch will
make payments representing a 9% royalty on sales of CoolLipo made
prior to the agreement and a portion of Cynosure's legal expenses.
CoolTouch also has agreed to pay a royalty rate of 10% of future
net sales for any licensed product sold strictly for lipolysis, and
7.5% of future net sales for any licensed product sold for
lipolysis and at least one other aesthetic procedure. As part of
its agreement with Cynosure, CoolTouch has agreed to a Consent
Judgment that it has infringed on the 873 patent and that the
patent is valid and enforceable. CoolTouch also has granted to
Cynosure and El.En. a royalty free license to any patents or patent
applications owned or controlled by CoolTouch related to the
treatment of fat and/or cellulite. "This is an important victory
for Cynosure," said President and Chief Executive Officer Michael
Davin. "In addition to the financial benefits of the agreement, the
successful outcome validates the strength of our patent position in
the emerging laser lipolysis industry. From our introduction of
Smartlipo in 2006 to the subsequent enhancements we have made to
the technology, we have established laser lipolysis as the gold
standard for the minimally invasive removal of fat. Today,
Smartlipo is the most recognized body contouring brand among U.S.
consumers. The agreement with CoolTouch further enhances that brand
and the technology behind our entire Smartlipo family of products."
"Going forward, we plan to continue our strategy of enforcing our
licensed intellectual property position around our laser lipolysis
portfolio," Davin concluded. "For the benefit of Cynosure and its
shareholders, we intend to pursue licensing arrangements with
additional laser lipolysis competitors that we believe have
infringed upon the 873 patent." The 873 patent is a fundamental
component of the Smartlipo LaserBodySculpting Workstation, a
groundbreaking system designed as an alternative to traditional
liposuction in patients with areas of localized fat. Cynosure
received U.S. Food and Drug Administration clearance to market the
Smartlipo workstation in late 2006. The product, which was launched
in early 2007, uses a laser to deliver energy directly to
subcutaneous fat cells, causing them to rupture. The emitted
fat-melting energy also coagulates tissue, thus inducing collagen
retraction and tissue tightening. Under Cynosure's license
agreement with El.En., once Cynosure has recouped all of its legal
costs incurred in the CoolTouch case, Cynosure will receive 60% of
the future royalty payments from CoolTouch and El.En. will receive
40%. About Cynosure, Inc. Cynosure, Inc. develops and markets
aesthetic treatment systems that are used by physicians and other
practitioners to perform non-invasive and minimally invasive
procedures to remove hair, treat vascular and pigmented lesions,
rejuvenate the skin, liquefy and remove unwanted fat through laser
lipolysis and temporarily reduce the appearance of cellulite.
Cynosure's products include a broad range of laser and other
light-based energy sources, including Alexandrite, pulse dye,
Nd:YAG and diode lasers, as well as intense pulsed light. Cynosure
was founded in 1991. For corporate or product information, contact
Cynosure at 800-886-2966, or visit http://www.cynosure.com/.
Forward-Looking Statements Any statements in this press release
about future expectations, plans and prospects for Cynosure, Inc.,
including statements about the company's plans to pursue additional
licensing arrangements, as well as other statements containing the
words "believes," "anticipates," "plans," "expects," "will" and
similar expressions, constitute forward-looking statements within
the meaning of The Private Securities Litigation Reform Act of
1995. Actual results may differ materially from those indicated by
such forward-looking statements as a result of various important
factors, including the global economic recession and its effects on
the aesthetic laser industry, Cynosure's history of operating
losses, its reliance on sole source suppliers, the inability to
accurately predict the timing or outcome of regulatory decisions,
changes in consumer preferences, competition in the aesthetic laser
industry, economic, market, technological and other factors
discussed in Cynosure's most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q, which are filed with the Securities
and Exchange Commission. In addition, the forward-looking
statements included in this press release represent Cynosure's
views as of the date of this press release. Cynosure anticipates
that subsequent events and developments will cause its views to
change. However, while Cynosure may elect to update these
forward-looking statements at some point in the future, it
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Cynosure's views as of any date subsequent to the date
of this press release. Contact: Scott Solomon Vice President Sharon
Merrill Associates, Inc. 617-542-5300 DATASOURCE: Cynosure, Inc.
CONTACT: Scott Solomon, Vice President of Sharon Merrill
Associates, Inc. for Cynosure, Inc., +1-617-542-5300, Web Site:
http://www.cynosure.com/
Copyright