KFx Medical Announces New Patent Infringement Suit Against Arthrex

SAN DIEGO--(BUSINESS WIRE)--KFx announces new patent infringement suit against Arthrex.

On July 31, 2015, after a federal appeals court confirmed a verdict that Arthrex infringed certain patents owned by KFx Medical, LLC, and compelled Arthrex to pay in excess of $35 million in damages, Arthrex filed a lawsuit in a New Jersey state court against KFx and Dr. Joseph Tauro, alleging misappropriation of trade secrets, unfair competition, breach of contract and conspiracy relating to the same patent claims. On September 1, KFx filed its response, denying Arthrex’s allegations and asserting that the issues Arthrex raised had already been determined at trial and upheld on appeal in the federal court. In response to Arthrex’s lawsuit, KFx also asserted counterclaims arising from Arthrex's infringement of U.S. Patent Nos. 8,926,663 and 9,044,226 in violation of 35 U.S.C. §271.

In April 2015, KFx Medical announced that the United States Court of Appeals for the Federal Circuit reaffirmed its January 20, 2015, ruling upholding a judgment of the United States District Court for the Southern District of California wherein a jury found that Arthrex infringed KFx’s U.S. Patent No. 7,585,311 and two other patents, and awarded KFx $29 million in damages. The District Court later awarded additional damages and interest, bringing KFx’s total award to over $35 million. In the April 2015 ruling an Arthrex petition for en banc rehearing was denied and a mandate to enforce the judgment issued. Arthrex paid in excess of $35 million to KFx Medical.

“The judicial system heard the arguments from both sides — KFx won and Arthrex lost. The jury found the Tauro et al. patents valid and that Arthrex infringed. Arthrex then lost on every appellate level. This new action is nothing more than a sore loser suit by Arthrex. It is particularly surprising that Arthrex would file this suit and even name Dr. Tauro — a highly regarded leader and surgeon — after Arthrex previously stipulated that KFx was the proper owner of the patented inventions made by Dr. Tauro in collaboration with KFx engineers. Innovative surgeons like Dr. Tauro certainly will have to think twice before sharing any ideas with Arthrex for fear of being needlessly sued,” remarked Tate Scott, president and CEO of KFx.

KFx is represented by Knobbe Martens of Irvine, Calif., and COLE SCHOTZ P.C. of Hackensack, N.J.

About KFx Medical

Headquartered in Solana Beach, Calif., KFx Medical was founded in 2003 to develop products for tissue fixation in a variety of orthopedic surgical procedures performed on the shoulder, knee, foot and ankle. KFx provides simple systems for orthopedic surgeons focused on sports medicine. The AppianFx line of implants from KFx reattach tissue to and in bone in shoulder, knee, foot and ankle procedures, which combined exceed well over 1 million annual surgical procedures in the United States. Product offerings include those that directly place and secure tissue into bone both with and without the use of sutures.

The company is privately held — Investors include Alloy Ventures, Charter Life Sciences, Arboretum Ventures, Montreux Equity Partners, and MB Venture Partners.