DexCom, Abbott agree to settle patent litigation

In a regulatory filing, DexCom (DXCM) stated: “As previously disclosed, DexCom has been involved in global patent litigation with Abbott (ABT) Diabetes Care and its affiliates. Both the Company and Abbott have accused the other of infringing certain patents, and each party has filed counterclaims and actions to invalidate the other party’s patents. On December 20, the Company and Abbott entered into a settlement and patent cross license agreement to resolve all outstanding patent litigation between the parties. Under the terms of the Agreement, the Company granted Abbott and its affiliates, and Abbott and its affiliates granted the Company and its affiliates, a worldwide, royalty-free, non-exclusive, fully paid-up license to certain patents and patent applications relating to analyte sensing, including to all the patents asserted in the Litigation. The Agreement does not obligate the Company or Abbott to pay any royalties or any other form of financial compensation. As part of the Agreement, each party, on behalf of itself and its affiliates, has also entered into a covenant not to sue until December 20, 2034; and agreed on behalf of themselves and their affiliates to refrain from challenging the patents and patent applications licensed under the Agreement for periods of time which vary depending on the relevant patents or patent applications.”