Eli Lilly Ordered to Pay German Drug Company $20 Million for Infringing Sales of Cialis

On July 18, 2017, after two years of litigation and a jury trial, a Texas federal court ordered Eli Lilly & Co. (“Eli Lilly”) to pay Erfindergemeinschaft UroPep GbR (“UroPep”) $20,000,000 in damages and over $930,000 in pre-judgment interest for patent infringement. The case arose from Eli Lilly’s marketing of its famous drug, Cialis. Though originally marketed as a drug to treat sexual dysfunction, Eli Lilly also marketed the drug as a treatment for prostate disease. Sales of Cialis for the treatment of prostate disease were significant, totaling over $704 million. On July 1, 2015, UroPep sued Eli Lilly, alleging that by marketing Cialis to treat prostate disease, Eli Lilly was inducing the infringement of UroPep’s patent on a method for treating prostate disease. The jury found that UroPep’s patent was valid and infringed, and awarded UroPep $20 million as a reasonable royalty for the use of UroPep’s patented invention. After trial, the judge awarded UroPep an additional royalty for Eli Lilly’s continued use of its invention for the three month period between the end of trial and the expiration date of UroPep’s patent.

Michigan Court Reinstates its Full $254 Million Award to Stryker for Competitor’s Infringing Wound Irrigation Devices

On July 19, 2017, a federal court in Michigan awarded Stryker Sales Corporation (“Stryker”) a total of more than $254,000,000 in its patent infringement suit against Zimmer Inc. and Zimmer Surgical Inc. (“Zimmer”). This award included three times Stryker’s actual damages, plus over $9.5 million in attorneys’ fees and associated interest, nearly $25 million in pre-judgment interest, and $218K in post-judgment interest. The court also issued a permanent injunction against infringement of one of the asserted patents. The decision is the result of a seven year battle between Zimmer and Stryker. The dispute involved portable, battery powered, handheld, pulsed lavage devices, which deliver pressurized irrigation for certain medical therapies, including orthopedic procedures and the cleaning of wounds. In its trial brief, Stryker asked the court to award $70 million in lost profits, which represents 92% of Zimmer’s infringing sales. After a two-week trial, the jury awarded Stryker $70 million in lost profits, the full amount Stryker requested. The court also awarded supplemental damages for pre- and post-verdict sales, treble damages, and attorneys’ fees and costs. Zimmer then appealed the case to the Federal Circuit and, ultimately, to the Supreme Court. The appeals courts upheld the jury’s award of $70 million in actual damages to Stryker. The Federal Circuit sent the case back to the Michigan federal court to reconsider its award of attorneys’ fees and treble damages in light of recent Supreme Court decisions. The Michigan court, in turn, reinstated its full award of attorneys’ fees and treble damages, together with costs and interest, for a total award of $254,485,338.