ResMed launches lawsuit against competitor

Sleep care company ResMed is living up to a reputation for aggressively defending its market position by launching a US patent infringement lawsuit against competitor Fisher and Paykel Healthcare.

The suit alleges Fisher and Paykel have copied ResMed proprietary mask technology. Specificially, it complains that Fisher and Paykel breathing mask products called Aclaim and Aclaim 2 are infringing ResMed patents.

A ResMed spokesman in Australia said he was not at liberty to discuss the type of damages being sought by the company.

The lawsuit comes as Fisher and Paykel is attempting to break into the sleep disorder market which underpins the bulk of ResMed's revenues.

The action appears to be the first in recent years which ResMed has initiated in relation to its mask technology.

However it has launched several suits, including one ongoing action, against its larger rival, sleep disorder and cardiopulmonary product company Respironics for alleged breaches of ResMed's intellectual property rights concerning flow generation technology.

ResMed chairman and CEO, Peter Farrell, said the company had invested heavily in the development of its mask technology and "will not tolerate the copying of our products by competitors."

Fisher and Paykel share prices slipped about 4 percent following announcement of the ResMed action.

Australian analysts who follow ResMed said the lawsuit was a tactic the company has used in the past.

"It is a pretty common marketing move in an industry that is still sorting itself out," said one analyst who commented on condition of anonymity.

"ResMed are very aggressive marketers and are very ready to go to court if they think they have the IP."

David Low, healthcare analyst with Deutsche Bank AG Equities in Sydney, said the lawsuit generally was viewed as a positive move for ResMed.

"It sends a strong signal to competitors that ResMed will defend its territory."