Palomar Medical Technologies Inc.,a maker of cosmetic lasers, said it will receive $31 millionplus royalties from Syneron Medical Ltd. (ELOS) in a settlement oftheir patent-infringement dispute over hair-removal systems.
Syneron and its Candela unit will get a license to Palomartechnology for professional hair-removal systems, and will payroyalties for home-use products, the companies said today in astatement. Palomar will also get a license to some Syneronpatents.
The settlement ends a dispute started in 2006 over high-powered lasers used to remove hair. Burlington, Massachusetts-based Palomar's lawsuit was against Candela, which YokneamIllit, Israel-based Syneron bought last year.
The agreement "eliminates our exposure to continued legalliability in the matter, does not require any additionalpayments for professional hair-removal systems, and supports ourongoing efforts to improve the company's gross and operatingmargins," Syneron Chief Executive Officer Louis P. Scafuri saidin the statement.
Both companies make light-based systems for cosmeticprocedures including the removal of hair, wrinkles and varicoseveins.
Palomar rose 26 cents, or 3.1 percent, to $8.66 at 4:29p.m. New York time on the Nasdaq Stock Market. Syneron rose 38cents, or 3.7 percent, to $10.56 in U.S. trading.
General Hospital Corp. in Boston , which licenses thetechnology to Palomar, will get 40 percent of the settlementpayments minus Palomar's legal costs.
The settled cases include Palomar Medical Technologies Inc. (PMTI) v. Syneron Inc., 08cv11902, and Palomar v. Candela Corp.,06cv11400, Candela Corp. v Palomar Medical Technologies Inc.,both U.S. District Court for the District of Massachusetts (Boston).
To contact the reporter on this story:Susan Decker in Washington at sdecker1@bloomberg.net
To contact the editor responsible for this story:Allan Holmes at aholmes25@bloomberg.net
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