ArthroCare and ETHICON to Settle Litigation; ETHICON Licenses ArthroCare's Patents in Two Fields.SUNNYVALE, Calif.--(BW HealthWire)--June 24, 1999-- ArthroCare Corporation (Nasdaq:ARTC ARTC Arthrocare Corp (stock symbol) ARTC Australian Rail Track Corporation ARTC Air Route Traffic Control ARTC Association de la Recherche Theatrale au Canada ARTC Andean Root and Tuber Crops ) today announced that ETHICON, Inc. and ArthroCare have agreed to settle a patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. claim brought by ArthroCare in February 1998 against ETHICON and the MITEK and GYNECARE divisions. Under the terms of the settlement, ETHICON will license ArthroCare's United States patents in the arthroscopy Arthroscopy Definition Arthroscopy is the examination of a joint, specifically, the inside structures. The procedure is performed by inserting a specifically designed illuminated device into the joint through a small incision. and gynecology markets and ArthroCare will dismiss the legal action. Both companies will continue to be active in the marketplace. ETHICON, Inc. will pay ArthroCare a license fee and ongoing royalties on sales in the United States of certain arthroscopy and gynecology products. ArthroCare anticipates these payments will have a positive material impact on results for the quarter ending July 3, 1999. The settlement agreement also establishes a procedure for resolution of certain potential intellectual property disputes in these two markets without litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . Additional terms of the settlement agreement were not disclosed. ArthroCare has developed a broad technology platform for operating on soft tissue. The technology is based on a patented method of tissue removal, called Coblation(TM) technology, that is designed to improve the effectiveness and safety of standard surgical methods. Coblation technology uses radio frequency (RF) energy to remove tissue through a significantly cooler process than is possible with traditional electro- or laser-surgery. Coblation-assisted surgery has the potential to improve operative precision and efficiency compared with many standard surgical techniques and thereby reduce pain and speed recovery. Except for historical information, this press release includes forward-looking statements that involve risks and uncertainties, including, but not limited to, the value of intellectual property, the establishment of brand identity, and risks as detailed from time to time in the company's Securities and Exchange Commission filings, including ArthroCare's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended January 3, 1999 and form 10-Q Form 10-Q See 10-Q. for the quarter ended April 3, 1999. Actual results may differ materially from management expectations. ArthroCare Corporation is a medical device company redefining the standard in soft tissue surgery by developing, manufacturing, and marketing patented CoblationTM technology that allows surgeons to operate with increased precision and accuracy, with minimal damage to surrounding tissue. The company's systems are being used to perform many types of closed joint surgery, and have been introduced for use in cosmetic surgery cosmetic surgery, plastic surgery for cosmetic purposes, such as the improvement of the appearance of the face by removing wrinkles or reshaping the nose. and ear, nose and throat (ENT ENT ears, nose, and throat (otorhinolaryngology). ENT abbr. ear, nose, and throat ENT ear, nose and throat. ENT Ears, nose & throat; formally, otorhinolaryngology ) surgery. ArthroCare's long-term strategy includes applying its patented platform technology to a broad range of other soft tissue surgical markets including various cardiology applications and the fields of urology, gynecology, and oral and general surgery. ArthroCare's web site can be found at www.arthrocare.com. ETHICON, INC. is a Johnson & Johnson company marketing surgical devices in the areas of wound management, women's health Women's Health Definition Women's health is the effect of gender on disease and health that encompasses a broad range of biological and psychosocial issues. , and surgical sports medicine. ETHICON's worldwide web address is www.ethiconinc.com. |
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