The University of Michigan is suing St. Jude Medical, alleging breach of their contract giving St. Jude the exclusive right to a patent covering technology used in St Jude's Epic and Trifecta cardiovascular valves.
The University of Michigan is suing St. Jude Medical (NYSE:STJ), accusing the medical device maker of failing to pay $4.3 million in royalties on sales of St. Jude's Epic and Trifecta cardiovascular valves.
The university said its deal with the St. Paul, Minn.-based company grants St. Jude the exclusive right to use a Michigan patent covering a "Method of Making Calcification-Resistant Bioprosthetic Tissue," including certain technology described in the patent. In return, the company is to pay a 5% royalty on net sales of the Epic and Trifecta devices.
In June 2011, according to the lawsuit, St. Jude sent the school a letter claiming it had overpaid some $4.3 million in royalties from 2009 to 2011, saying it planned to apply the alleged over-payment as a credit to future royalty payments to Michigan.