DENVER, Colo., June 11 -- Fischer Imaging and Thermo Electron Corp. have settled patent-infringement litigation that Fischer filed against Trex Medical and Hologic Inc. involving patents relating to Fischer Imaging's Mammotest stereotactic breast-biopsy system.
Trex Medical is a discontinued operation of Thermo Electron. In September 2000, Thermo Electron sold assets of Trex Medical to Hologic Inc. while retaining certain responsibilities for the ongoing patent litigation with Fischer.
Under the settlement, Fischer received $25 million in cash from Trex Medical and will also receive $7.2 million relating to a paid-up license through the remaining term of the patents for the continued sale of the breast-biopsy system now being sold by Hologic. This license will be paid in equal annual installments over the next eight years. Fischer will recognize the settlement over the original patent life of 17 years, resulting in a one-time gain of about $19.2 million and future annual license fees of about $1.9 million attributable to the remaining life of the underlying patents.