Cynosure Settles Patent Suits Against Tria Beauty

(RTTNews) - Cynosure, Inc. (CYNO) said Monday that it will receive $10 million plus future royalty payments under a comprehensive settlement agreement with Tria Beauty, Inc. that ends the patent infringement litigation between Tria and Palomar Medical Technologies, which Cynosure acquired in June this year.

The settlement includes two non-exclusive patent license agreements between Cynosure and Tria.

The first agreement grants Tria a non-exclusive, worldwide license to U.S. Patent Nos. 5,735,844 and 5,595,568 and foreign counterparts for consumer hair removal products. Those patents were acquired from Palomar by Cynosure. As part of the agreement, Tria will pay Cynosure $8.5 million. addition, Cynosure will receive a royalty-free license to certain Tria patents outside the consumer field.

The second agreement grants Tria a non-exclusive, royalty bearing, worldwide license to the claims of certain Palomar patents, including but not limited to U.S. Patent Nos. 8,182,473, 8,328,794, and 8,328,796, for consumer hair removal products. As part of the agreement, Tria will pay Cynosure $1.5 million covering sales made prior to October 1, 2013. In addition, Cynosure will receive a 3% royalty on U.S. sales made after October 1, 2013 through September 30, 2021 with respect to U.S. Patent Nos. 8,182,473, 8,328,794, and 8,328,796 or through the expiration of any other licensed Palomar patent if such expiration is after September 30, 2021, unless the second agreement is terminated earlier.