ReCor Medical, an international medical device company that has developed an innovative ultrasound therapy for patients with resistant hypertension, has achieved a decisive victory from the Delaware Supreme Court. In July 2013, the Delaware Court of Chancery declared that ReCor Medical, represented by Knobbe Martens Olson & Bear LLP, is the rightful owner of patent applications pertaining to specific ultrasound technologies used to treat hypertension. In addition, the trial court granted ReCor Medical an injunction prohibiting the defendants—the former CEO of ProRhythm and his new company—from using the ultrasound technology. The mandate of the Delaware Supreme Court, affirming the judgment on appeal, issued last week.
In 2007, Delaware ultrasound technology company ProRhythm Inc. filed for bankruptcy. In 2009, the Bankruptcy Court authorized ReCor Medical’s purchase of ProRhythm’s assets, including all of ProRhythm’s intellectual property. A month later, the former CEO of ProRhythm filed a patent application disclosing the use of ultrasound to treat hypertension. ReCor Medical only learned of that new patent application when it published 18 months later. In April 2012, ReCor Medical commenced an action in the Delaware Court of Chancery, seeking a ruling that it is the rightful owner of that new patent application, as well as subsequent applications that claim the same technology.
At trial, the Knobbe Martens litigation team proved that the former ProRhythm CEO conceived of the inventions in the new patent application while he was still employed at ProRhythm, and, therefore, that intellectual property belonged to ReCor Medical. The Delaware Court of Chancery also awarded ReCor Medical the attorneys’ fees and costs that it incurred in the case. The former ProRhythm CEO and his new company appealed that decision to the Delaware Supreme Court, which affirmed the Court of Chancery’s judgment in all respects.
At trial and on appeal, Knobbe Martens partner John Holcomb led the litigation team, which included Kenneth Nielsen, as well as ReCor Medical in-house counsel Vito A. Canuso III. The litigation team worked in conjunction with the Knobbe Martens patent prosecution team led by partners Salima Merani and Ted Papagiannis.
About ReCor Medical:
ReCor Medical is an international medical device company based out of Menlo Park, California, with a European branch office in Amsterdam, The Netherlands. The company has developed a unique therapeutic ultrasound system for performing renal denervation in patients with resistant hypertension. The PARADISE® technology (Percutaneous Renal Denervation System) includes a 6 French catheter with a cylindrical transducer that emits ultrasound energy circumferentially, allowing for a more efficient renal denervation procedure.
About Knobbe Martens:
With over 275 lawyers and scientists nationwide, Knobbe Martens Olson & Bear LLP dedicates its practice to all aspects of intellectual property law including litigation. Consistently ranked among the top intellectual property firms worldwide, Knobbe Martens serves a diverse group of clients from multinational corporations to emerging businesses of all stages. Headquartered in Orange County, California, Knobbe Martens also has offices in San Diego, Los Angeles, San Francisco, Silicon Valley, Seattle and Washington, D.C. More information about the firm can be found at www.knobbe.com.
