Shares in sleep treatment specialist ResMed Inc. (CHESS) (ASX: RMD) fell this afternoon after the group's arch-rival Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) announced it has filed patent infringement proceedings against ResMed in Australian courts.
Fisher & Paykel is claiming that several of ResMed's leading products including its AirSense 10 and AirCurve 10 flow generators infringe patents held by Fisher & Paykel. This is just the latest in a series of tit-for-tat claims and counter claims filed by both companies in courts around the world in a dispute that appears to have escalated out of all proportion.
Both companies recently flagged mounting legal costs as a headwind in recent profit reports as expensive lawyers' fees eat into reported profits. There's also the matter of management time dedicated to fighting court cases as both companies insist the actions are necessary to protect their intellectual property. Given the patent dispute appears to be escalating investors can expect more bumps in the road ahead.
