Baxter Healthcare Wins Patent Infringement Suit

CHICAGO--(BUSINESS WIRE)--Baxter International, Inc. has won a long-running battle in a patent infringement suit (Fresenius USA, Inc. et al v. Baxter International Inc. et al.) against Fresenius Medical Care involving Fresenius’ Number One - selling hemodialysis machine in the United States. The U.S. District Court for the Northern District of California today issued opinions permanently enjoining Fresenius from manufacturing its flagship product affirming it infringes on Baxter’s technology and awarding damages to Baxter. Bell, Boyd & Lloyd LLP represented Baxter in the case.

“[i]t is Fresenius's burden, and not Baxter's, to taste the bitter fruit of its own inaction.”

The Order, written by Judge Saundra B. Armstrong, requires that Fresenius stop making, using or selling the 2008K hemodialysis machine effective January 1, 2009. Judge Armstrong also imposed a 10% royalty on the sales price of each infringing machines sold from now until January 1, 2009 and further imposed a 7% royalty on all disposable products used with the infringing 2008K hemodialysis machines. The 2008K is, according to Fresenius, its “cornerstone product” and is the best selling hemodialysis machine in the marketplace, with over 90 percent market share.

In granting the injunction, Judge Armstrong noted that much of the hardship that Fresenius will face from the injunction is its own doing because it did not take any steps to design around the patents-in-suit: “[i]t is Fresenius's burden, and not Baxter's, to taste the bitter fruit of its own inaction.”

In a February 2007 ruling, Judge Armstrong upheld the validity of Baxter’s patents that had been challenged by Fresenius in a 2003 law suit, ruling that Fresenius failed to introduce substantial evidence of invalidity.

Baxter is represented by Bell, Boyd & Lloyd LLP. The trial team included Michael J. Abernathy, Alan Barry, Kara E.F. Cenar, Sanjay K. Murthy, Adam L. Marchuk, Brian J. Arnold and Marron Mahoney.

Baxter International is based in Illinois and, through its subsidiaries, assists healthcare professionals and their patients with the treatment of complex medical conditions, including hemophilia, immune disorders, cancer, infectious diseases, kidney disease, trauma and other conditions.