GI Dynamics Resolves Litigation with Gore
Gore Drops All Claims Against GI Dynamics
LEXINGTON, Mass. & SYDNEY--(BUSINESS WIRE)--GI Dynamics, Inc. (GI Dynamics or the Company) (ASX: GID) announced that it has reached a settlement with W.L. Gore & Associates (Gore) in litigation brought by Gore in the United States District Court for the District of Arizona. Under the settlement, GI Dynamics retains exclusive ownership and control of its patent portfolio, and both parties have dismissed all claims against each other. GI Dynamics has also granted Gore a non-exclusive, royalty-free license to use GI Dynamics’ patents, but only in the vasculature (i.e., blood vessels). Gore is not licensed to use GI Dynamics’ patents for any applications in the gastrointestinal tract, which is the area of the body in which GI Dynamics’ products are designed to be used. Neither side will make any cash payments to the other, nor will any royalties be due.
“We are delighted with this settlement,” stated Stuart A. Randle, president and CEO of GI Dynamics. “It confirms that GI Dynamics is the sole and exclusive owner of its technology and patent portfolio. With the litigation resolved, we will continue to focus on expanding the availability of EndoBarrier® through new commercial centers and markets outside the U.S. and the pivotal clinical trial in the U.S. We hope to address the unmet needs of the millions of people living with uncontrolled type 2 diabetes around the world.”
As previously disclosed in the IPO Prospectus, GI Dynamics has been engaged in litigation in the Court with one of its suppliers, Gore, which supplies a material used to manufacture the Company's products. Gore commenced proceedings against the Company in 2010, claiming that it was the co-owner (i.e., the equal joint owner) of all of the Company’s patents and patent applications as well as claiming that certain of its employees were co-inventors of the Company's issued patents.
The Company filed counterclaims against Gore seeking declarations that Gore was neither a co-owner nor a co-inventor of any of its patents or applications and alleging misuse and misappropriation by Gore of the Company’s trade secrets, breach of contract, misrepresentation, and unfair and deceptive trade practices.
A jury trial in the matter was scheduled to begin on January 15.
About GI Dynamics
GI Dynamics, Inc. (ASX: GID) is pioneering the development and commercialization of effective, non-surgical treatments targeting the large and growing global patient populations with type 2 diabetes and obesity. The company’s flagship product, EndoBarrier®, is a novel, non-surgical device proven to lower blood glucose levels and promote weight loss in diabetic patients and/or obese patients during the implant period. GI Dynamics currently markets EndoBarrier in select regions in Europe, South America and Australia and is planning near-term commercial expansion into additional markets. EndoBarrier is not approved for sale in the United States and is considered investigational. Founded in 2003, GI Dynamics is headquartered in Lexington, Massachusetts. For more information, please visit www.gidynamics.com.
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