CAMPBELLVILLE, CANADA - NIR Diagnostics Inc. announced in a press release that it has entered into a settlement agreement, August 20, 2008, to dismiss its remaining claims in the patent infringement action against Masimo Corporation filed in the United States District Court by Shaklee Corporation.

Shaklee initially filed suit against Masimo in July, 2007 in the Central District of California, alleging infringement of US Patent No. 6,651,015 and US Patent No. 6,611,777, naming NIR Diagnostics as an involuntary plaintiff.

The asserted patents were licensed by NIR Diagnostics to Shaklee under The Second Amended and Restated Exclusive License Agreement effective August 9, 2006.

On August 9, 2008, Shaklee entered into a unilateral settlement agreement with Masimo in which Shaklee agreed that it would not continue litigation against Masimo and would not fund continued litigation by NIR Diagnostics.

The agreement was reached on the eve of the expiry date of Shaklee rights that were required to settle the claim. NIR Diagnostics immediately advised Shaklee that the commitment made in its settlement not to fund NIR Diagnostics’ continued litigation against Masimo, was a breach of its August 9, 2006 License Agreement, Shaklee dispute a breach occurred.

On August 11, 2008, pursuant to the Shaklee-Masimo settlement agreement, Shaklee instructed NIR Diagnostics to dismiss its claims against Masimo.

Under the terms of NIR Diagnostics’ settlement with Masimo, as with the Shaklee-Masimo settlement that preceded it, the case has been dismissed without either party incurring financial liability to the other.

NIR Diagnostics is an innovator in the development of near-infrared, spectroscopic medical diagnostics.

Source: ag-IP News