Computer-aided detection (CAD) firms R2 Technology and iCAD have settled their patent infringement lawsuits. In the settlement, Sunnyvale, CA-based R2 will dismiss with prejudice litigation filed against Intelligent Systems Software, ISSI Acquisition, and iCAD, filed in the U.S. District Court for the District of Delaware.
Nashua, NH-based iCAD will dismiss with prejudice its and Scanis’ suit against R2 Technology, filed in the U.S. District Court for the District of New Hampshire. ICAD will be granted a non-exclusive license to the patents named in the suit filed by R2, and will pay R2 an aggregate of $1.25 million, with $250,000 deferred and payable on a quarterly basis through December 2005.
In addition, iCAD will provide R2 with shares of its common stock valued at $750,000, and will also pay certain continuing royalties, which are based on the category and configuration of products sold by iCAD.
The company has also granted R2 a partial credit against future purchase of iCAD digitizers worth up to $2.5 million over five years to encourage R2 to purchase iCAD film digitizers. The partial credit is meant to provide a purchasing advantage to R2, while providing a reasonable profit margin and additional economies of scale for iCAD, according to the firms.
By AuntMinnie.com staff writersSeptember 9, 2003
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iCAD files suit against R2, July 1, 2003
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