University of Pittsburgh Settles Patent Suit with Varian for $35 Million

April 11, 2014 - Varian Medical Systems Inc. agreed to pay the University of Pittsburgh ("Pitt") $35 million as part of an agreement to settle their patent litigation. Pitt sued Varian in 2007 for infringement of a patent on real-time position management technology, which Varian used in radiation therapy equipment.

In 2012, a U.S. District Court ordered Varian to pay about $102 million in damages, enhanced damages, interest and fees, plus ongoing royalty payments. Varian appealed, and the U.S. Court of Appeals for the Federal Circuit issued its ruling this month, partly reversing the lower court's decision in favor of Pitt.

Pitt and Varian's settlement agreement, which they reached earlier this year, was contingent on the CAFC's ruling. Under the settlement, Varian will not owe ongoing royalty payments to Pitt for the sale of Varian products that incorporate the patented technology.