the australian: htw v vcr
The Australian: Heartware Heart attacks: rival firms pumped up Helen Matterson August 04, 2005 THE legal stoush between Ventracor and Heartware is about to get uglier, with Heartware alleging anti-competitive behaviour and violation of US anti-trust laws by its foe.
The artificial heart device companies have been at loggerheads since December, when in the days leading up to Heartware launching its float prospectus, Ventracor sought discussions about a cross-licensing deal on the grounds its technology was being replicated by Heartware.
Heartware saw the move as an attempt to disrupt its listing and capital raising (which went on to secure $32.4 million). Its refusal to meet until after the listing process prompted Ventracor to file for patent infringement action in the US District Court.
Late on Monday, Heartware filed its defence, denying any infringement, and surprised by presenting six counter-claims seeking damages and costs.
This action is based on Ventracor's patents being "invalid" and "unenforceable".
During the process of discovery, Heartware was able to scrutinise the two main patents for the Ventracor heart device.
Heartware's legal team alleges that in applying for the patents Ventracor did not disclose US, German and international patents, deemed to be similar, and questions whether the patents would have been granted if the disclosures were made.
Heartware claims that because the patents were obtained using "inequitable conduct", Ventracor blocked competition in the heart device market.
Heartware CEO Stuart McConchie said to pursue such litigation would be costly, but the company was confident of its stance: "It will not impede our ability to carry out our operations and achieve milestones published in the prospectus."
Ventracor vowed to defend itself yesterday, saying it had already identified significant errors in Heartware's claims.
Ventracor CEO Colin Sutton described the claims as "ludicrous" and dismissed any concerns that the pending court action might have on the company's ability to raise funds in the future.
"This is a sideshow," he said.
Ventracor is in its second year of human clinical trials for its VentrAssist heart device in the lead up to getting European and US regulatory approval. Surgeons have implanted more than 30 devices.
Heartware's ventricular assist device is expected to start human clinical trials in early 2006.
Shares in Heartware were off 1c to 41c and Ventracor shares were soften by .005c to $1.345.
HTW Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
