Division of Tyco Healthcare Ordered to Pay $265 Million Plus Royalties for Product Infringement
In January of 2006, Nellcor, a division of Tyco Healthcare settled its suit with Masimo Corporation. The court found that Nellcor had infringed on Masimo's patents on oximeters. Oximeters are widely used in the medical field to obtain oxygen saturation levels and pulse rates. As a result, Nellcor had to pay Masimo $265 million plus royalties.
Nellcor was also instructed to cease shipping its oximeters but was allowed to supply service and sensors for those previously sold. However, Nellcor received the right to sell their new line of oximetry products in exchange for royalties.
Ebay Pays $25 Million in Damages for Buy It Now Infringement
In 2003, MercExchange won a suit against eBay for infringing on their "Buy It Now" technology. Ebay was ordered to pay the Virginia patent-holding company $25 million in damages. At the time, the "Buy It Now" feature made up 2% of eBay sales. Today, the "Buy It Now" feature is responsible for one third of the company's income. In 2006, the Supreme Court ruled that the decision about whether or not eBay could continue using the feature would be determined by the lower courts. And the Supreme Court instructed them to review the case again.
Microsoft Directed to Pay $521 Million in Damages for Software Infringement
A Chicago federal court ruled that Microsoft has infringed on a patent held by Eolas Technologies. The internet-technology company stated Microsoft infringed on their patent when they used plug-ins and applets in their software to enable Internet Explorer. As a result, Microsoft was ordered to pay Eolas Technologies $521 million.
Amazon and IBM Settle Patent Dispute For Undisclosed Amount
In early 2007, Amazon was ordered to pay an undisclosed sum to IBM as a result of infringing on two of IBM's patents. The patents being reviewed included hyperlink technology and electronic ordering. In December, Amazon countersued, stating that IBM had infringed on five of its patents. Ultimately, the two companies came to terms on a long-term licensing agreement.