CUTERA SETTLES PATENT LITIGATION WITH PALOMAR

Palomar and Cutera have settled two patent infringement lawsuits brought by Palomar against Cutera, the companies announced.

In its lawsuits, which were filed in 2002, Burlington, Mass.-based Palomar accused Cutera of infringing its "Anderson Patents" for hair-removal systems. The infringing products were Cutera's CoolGlide Laser and Lamp Systems, which include the Xeo and Solera Opus platforms using the PW770 hand-piece, Palomar said.

Under the settlement terms, Brisbane, Calif.-based Cutera will pay Palomar $15.5 million as an 8.5 percent royalty on sales of its laser- and lamp-based hair removal systems beginning with Cutera's initial sales in 2000 through March 31 of this year, Palomar said. Cutera will also pay $2.5 million in interest on past sales of the infringing devices, $4 million to cover legal costs incurred by Palomar while enforcing its patents, and a 7.5 percent royalty to Palomar beginning April 1 on future sales of both the infringing systems and any new light-based hair removal systems Cutera develops, Palomar added.