DexCom, Inc. (DXCM, Financial) has announced a significant development in its ongoing global patent litigation with Abbott Diabetes Care, Inc. The two companies have reached a settlement and entered into a patent cross license agreement, effectively resolving all outstanding patent disputes between them.
Under the terms of this agreement, both DexCom and Abbott have granted each other a worldwide, royalty-free, non-exclusive, fully paid-up license to certain patents and patent applications related to analyte sensing. This includes all patents that were part of the litigation. Importantly, neither company is required to pay royalties or any other form of financial compensation as part of this agreement.
Additionally, both parties have agreed to a covenant not to sue each other until December 20, 2034. They have also committed to refraining from challenging the licensed patents and patent applications for varying periods, depending on the specific patents involved.
This settlement marks a pivotal moment for DexCom, Inc. (DXCM, Financial) as it allows the company to focus on its core business operations without the distraction of ongoing litigation. The agreement also underscores the importance of collaboration and mutual respect in the competitive field of medical technology.
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