Businesses often deal in large sums of money, valuable real estate and other significant assets. The larger the firms, the higher the price tags and the greater the risk if anything goes wrong. The Uniform Commercial Code is in place to aid and protect businesses during these transactions. Business owners in New Jersey and New York should be aware of this whenever they engage in a commercial transaction.
Another area covered by the UCC is intellectual property, including patents. It can often be challenging to determine whether a company is profiting from another’s idea and can lead to lengthy disputes. For several years, Medtronic Inc. and Edwards Lifesciences Corp have been at war over patents for technology used in open-heart surgery. Both companies sell implants which employ very similar methods, separating the chest bone in order to reach the heart.
The dispute began when an injunction was issued against Medtronic, after a court determined that the firm had infringed an Edwards’ product, known as Sapien. Finally, Medtronic has agreed to a $750 million settlement and royalties for nearly a decade, which means the firm will be able to continue selling its replacement heart valves, under the name CoreValve. As part of the settlement the two companies have also agreed to put an end to all litigation remaining between them.
Cooperation of this sort is beneficial to all concerned and business owners in New Jersey and New York can certainly learn from it. There are many things to consider when engaging in any form of business transaction and although they are outlined in the UCC, it can be a difficult process to navigate. An attorney can help you to ensure you adhere to the rules and protect yourself from costly business litigation.
Source: Fox Business, “Medtronic Settles Heart Valve Patent Dispute With Edwards,” May 20, 2014