NuVasive Gets Unfavorable Trademark Verdict - Analyst Blog

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Medical device maker NuVasive, Inc. ( NUVA ) received an unfavorable verdict from the California federal jury on Apr 3, 2014, relating to its use of the trade name "NeuroVision" for its nerve monitoring platform. The verdict entails NuVasive to pay an amount of $30 million in damages to NeuroVision Medical Products.

This is NuVasive's second loss to NeuroVision Medical Products in a long-running trademark infringement lawsuit that began in Sep 2009. Shares of NuVasive plunged nearly 6.5% in the trading sessions following the verdict to finally close at $35.68 yesterday.

NeuroVision Medical Products had first sued NuVasive about five years ago, alleging infringement of its namesake trademark which it had been using since the early 1990s. NeuroVision Medical Products held that NuVasive deliberately concealed its knowledge of the former's prior use of the mark while registering the same with the U.S. Patent and Trademark Office (USPTO) in 2003.

In Oct 2010, a $60 million verdict was awarded by a District Court in favor of NeuroVision Medical Products. The verdict barred NuVasive from using the "NeuroVision" trademark in the future which consequently prompted the company's 2011 appeal to the Ninth Circuit (the Circuit Court).

The $60 million verdict was reversed by the Circuit Court in Sep 2012 on grounds of a misled jury and improperly excluded evidence. The case was remanded back to the District Court for a fresh trial under a different judge.

The jury of the second trial found that NuVasive had intentionally infringed the trademark and as a result, awarded $30 million in damages to NeuroVision Medical Products last Thursday. However, NuVasive strongly disagrees with the verdict and pledges to vigorously defend its right to use the "NeuroVision" trademark.

NuVasive intends to file post-trial motions in the U.S. District Court for the Central District of California seeking judgment as a matter of law, and, in the alternative, a new trial. If necessary, it intends to appeal the verdict to the Ninth Circuit going ahead.

Currently, NuVasive carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the medical products industry are Enzymotec Ltd. ( ENZY ), Covidien plc ( COV ) and William Demant Holding A/S ( WILYY ). While Enzymotec sports a Zacks Rank #1 (Strong Buy), Covidien and William Demant Holding carry a Zacks Rank #2 (Buy).



COVIDIEN PLC (COV): Free Stock Analysis Report

ENZYMOTEC LTD (ENZY): Free Stock Analysis Report

NUVASIVE INC (NUVA): Free Stock Analysis Report

WILLIAM DEMANT (WILYY): Get Free Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: COV , ENZY , NUVA , WILYY

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