Facts

Cardiac Science Corporation and LifeCor Inc. entered into a cross-license agreement relating to LifeCor's wearable defibrillator after Cardiac Science accused LifeCor of infringing certain of its patents. Under the terms of the agreement, Cardiac Science was to receive a per-unit royalty on sales of the product. Thereafter, Zoll Medical Corp. purchased LifeCor, and LifeCor became Zoll LifeCor Corp. Cardiac Science sued Zoll LifeCor Corp. and Zoll Medical Corp. after it stopped receiving royalty payments despite continued sales of the LifeVest product.

PLAINTIFF'S CONTENTIONS:
LifeCor contended that Zoll LifeCor and/or Zoll Medical were bound by the terms of the cross-license agreement based on Zoll Medical's acquisition of LifeCor. It brought claims against Defendants for breach of contract and sought declaratory judgment that the cross-license agreement had not been terminated and remained in full force and effect.

DEFENDANTS' CONTENTIONS:
LifeCor contended that it terminated the cross-license agreement after it was purchased by Zoll Medical. Zoll Medical contended that it was not a party to the cross-license agreement and therefore any obligations under the agreement did not transfer over when Zoll Medical purchase LifeCor.

Damages

Cardiac Science sought $22,991,985 in damages for unpaid royalties and interest.

Result

The jury found that Zoll LifeCor and Zoll Medical breached the cross-license agreement and awarded Cardiac Science $22,991,985 in damages.

Other Information

FILING DATE: April 27, 2012.

Deliberation

one day

Length

12 days