ArthroCare and Stryker Strike Licensing Deal
Stryker will pay ArthroCare (Sunnyvale, CA) an initial license fee and ongoing royalty payments on worldwide sales of its Serfas arthroscopy product set. The license agreement also establishes a procedure for resolution of certain potential intellectual property disputes in this market without litigation.
"Our intellectual property portfolio is a reflection of the investment our shareholders have made in developing our proprietary technology and we are committed to making sure they receive an appropriate return on that investment," said Michael A. Baker, ArthroCare's president and CEO. "We are pleased we have accomplished that in this case without the necessity of prolonged legal activity, and we look forward to competing with Stryker in the marketplace."
ArthroCare's soft-tissue surgery systems consist of a controller unit and an assortment of single-use disposable devices that are specialized for specific types of surgery. The Coblation technology is designed to replace the multiple surgical tools traditionally used in soft-tissue surgery with one multi-purpose surgical system.
Stryker manufactures specialty surgical and medical products, including orthopaedic reconstructive, trauma, spinal and craniomaxillofacial implants, powered surgical instruments, endoscopic systems, patient care and handling equipment.