Source: Reuters

The recent patent cross-licensing agreement between DexCom, Inc. and Abbott Diabetes Care, Inc. ends a long-running international patent litigation and allows both companies to operate more freely in a highly competitive market. Without a doubt, this type of agreement is fundamental, as it allows companies to avoid the costs and distractions associated with protracted litigation, favoring collaboration and innovation.

It should be recalled that, the context of the litigation dates back to a lawsuit filed by Abbott against DexCom, alleging patent infringement related to its G7 applicator, a disposable patch used in its continuous glucose monitoring (CGM) device. In turn, DexCom countersued, challenging the validity of Abbott’s patent. This case highlights the complexities of patent law and the importance of defending and strategically managing innovations in the business sector, especially in medical and technological innovation.

The aforementioned agreement signed between both companies establishes non-exclusive, royalty-free global licenses on patents related to analyte detection, which implied that both parties agreed to waive the possibility of claiming economic compensation.

Importantly, the agreement also includes a clause that prevents both parties from suing each other until December 2034, which translates into legal stability that could avoid costly litigation, facilitating research and development in their respective business areas.

The market for continuous glucose monitoring devices is growing steadily, with a valuation of $10.6 billion in 2022 and projections indicating a possible increase to $20.8 billion by 2033.