Siemens to Pay Settlement in Pacemaker Patent Suits

A four-year patent infringement battle over cardiac pacemakers between Medtronic Inc. and Siemens AG has ended with Siemens agreeing to pay more than $300 million over 10 years to settle the lawsuits.

The German industrial giant Siemens produces pacemakers, which stimulate sluggish heartbeats, through its Siemens Pacesetter Inc. unit in Sylmar. Medtronic, the world’s leading pacemaker concern, is based in Minneapolis.

At issue in the several suits filed in the case was the “rate responsive” technology that Medtronic introduced into its pacemakers in the mid-1980s. The technology allows pacemakers to adjust their electrical impulses to a patient’s activity level.

Although Siemens denied any patent infringement, the company said it agreed to settle the case to avoid further litigation. Also, Siemens already had lost some major decisions in the case in a federal court in Chicago.

Siemens agreed to pay Medtronic $75 million up front, plus royalties over 10 years on worldwide sales of Siemens’ pacemakers. Those royalties are expected to reach at least $230 million.

Medtronic controls nearly 50% of the worldwide market for pacemakers, while Siemens Pacesetter is second with more than 20%.