| LEGAL DISPUTES |
Licensor has been awarded $105 million in compensatory and $400 million in punitive damages from licensee in a lawsuit over technology licensing. A jury found that licensee engaged in unfair competition and breached a licensing agreement related to licensor`s technology used in medical diagnostics. The verdict also requires licensee to license any improvements in the technology to licensor. Licensee claims to have invested more than $350 million to develop and commercialize the technology, adding that licensor`s management and shareholders have benefited financially despite difficulties in the administration of the contract by licensee. Licensee says it will appeal because the damages awarded are "out of proportion" and because it wants to protect its rights to use the technology. While the appeal is ongoing, licensee can continue to sell Elecsys instruments and assays. Licensor says it will terminate the licensing agreement "once the judgment is affirmed by the Court of Appeals."
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