ConforMIS Settles Patent Disputes With Zimmer for $9.6 Million

Billerica, Massachusetts-based ConforMIS Inc. has entered into a settlement and license agreement with Zimmer Biomet to resolve all existing patent disputes between the companies for $9.6 million.

ConforMIS is a medical technology company that develops, manufactures, and sells customized joint replacement implants and instruments that “fit each patient’s unique anatomy.” Its main product offerings include knee and hip replacement products.

Zimmer Biomet is a Warsaw, Indiana-based medical device company that designs, manufactures, and markets solutions to support orthopedic surgeons and clinicians in more than 100 countries worldwide. Zimmer includes Zimmer Biomet Holdings, Inc., Zimmer, Inc., Zimmer US, Inc., and Biomet Manufacturing, LLC.

The settlement comes after last year’s litigation between the parties. Last year ConforMIS sued Zimmer for patent infringement related to its joint arthroplasty devices and surgical tools. Zimmer also sued ConforMIS for patent infringement related to its knee replacement systems.

Pursuant to the agreement, ConforMIS and Zimmer will dismiss all outstanding litigation between the parties. Additionally, the parties will not pursue future litigation against each other regarding their various commercialized joint replacement products. Specifically, their knee and hip replacement products as well as Zimmer’s shoulder replacement products.

The parties have also cross-licensed their technology. ConforMIS granted to Zimmer a “royalty-free, non-exclusive, worldwide license to certain patents for the exploitation of patient-specific or partially patient-specific instrumentation for knee, shoulder or hip replacement.” Zimmer granted to ConforMIS a “fully paid-up, royalty-free, non-exclusive, worldwide license to certain patents for the exploitation of implants and patient-specific instruments for knee replacement.”

Within 30 days of the agreement, Zimmer will pay ConforMIS $3.5 million. Zimmer will make additional payments to ConforMIS through January 15, 2021.

In the ConforMIS press release, ConforMIS President and Chief Executive Officer Mark Augusti said, “We are glad to have reached a mutually productive settlement of all current patent litigation with Zimmer Biomet and are pleased to have the company become a licensee.”

Augusti continued, “Through this settlement, we have once again monetized our patient-specific instrument patents and steadfastly protected our core business of patient-specific implants.”