KFx Medical Wins Appeal vs. Arthrex Inc. Upholding $35 Million Judgment of Patent Infringement and Validity

SAN DIEGO–(BUSINESS WIRE)–KFx Medical announced that the United States Court of Appeals for the Federal Circuit today affirmed a judgment of the United States District Court for the Southern District of California in which a jury found that Arthrex infringed KFx’s U.S. Patent No. 7,585,311 and two other patents, found the patents were valid, and awarded $29 million in damages. The District Court Judge Dana M. Sabraw later awarded additional damages and interest to bring the total judgment to over $35 million.

“We are pleased to see this outcome for all of those who have contributed to developing this superior and novel rotator cuff repair.”

Joseph F. Jennings of Knobbe, Martens, Olson & Bear, LLP argued the appeal on behalf of KFx January 6, 2015 in Washington D.C. With him on the brief were Sean M. Murray, Marissa Calcagno, and Brian C. Horne also with Knobbe Martens. Mr. Jennings successfully tried the case in the District Court.

“There are a great number of people to thank for this verdict. Ryan Melnick at Knobbe filed this family of patents on behalf of KFx. His work was impeccable and it is tremendously rewarding to see it fully upheld. The litigation team, headed by Joe Jennings, are simply fabulous,” remarked Tate Scott, president and CEO of KFx. “We are pleased to see this outcome for all of those who have contributed to developing this superior and novel rotator cuff repair.”

On August 1, 2011, KFx filed the complaint against Arthrex alleging claims of induced and contributory infringement of United States Patent Number 7,585,311. Previously KFx licensed the ‘311 family of patents to Johnson and Johnson and Smith & Nephew.

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 new 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.