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Visx, Summit dissolve Pillar Point Partners
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SANTA CLARA, Calif. - Visx Inc. (Santa Clara, Calif.) and Summit Technology Inc. (Waltham, Mass.) agreed to dissolve Pillar Point Partners and end all pending disputes and litigation between the two companies. Visx will pay $35 million to Summit in cash to repay formerly withheld fees and settle several disputes.
Visx and Summit have also granted each other a worldwide, royalty-free cross license. Each party will retain all rights to license their own patents to other manufacturers.
"I am pleased that the resolution of these issues has been achieved in a rational and fair manner," stated Robert J. Palmisano, chief executive officer of Summit. "We now enter a new era in which we will focus 100% of our efforts on growing the already expanding market of consumers who will benefit from laser vision correction."
The announcement culminates 6 months of negotiations between the two.
Mark Logan, chairman, president and CEO of Visx, said, "Without Pillar Point there would not be the vital, dynamic new industry we see today. It is now time to move on to the next exciting stage in the development of this market."
FTC action could end
Mr. Palmisano said, in a press conference, that the dissolution of Pillar Point is expected to end the Federal Trade Commission's (FTC's) action against the company, which was filed in March. In that action, the FTC filed allegations of restraint of commerce and a monopoly in the sale of technology used in photorefractive keratectomy (PRK).
Summit and Visx have both scheduled meetings with the FTC staff to discuss ending its action.
"It has not settled the FTC issue, but it gives us a clear path to settlement in that most of the issues that the FTC was interested in will go away," Mr. Palmisano said.
The FTC suit also alleged that Visx fraudulently obtained patents covering PRK and sought to render unenforceable parts of Visx's licensing claims.
Company spokesperson Lola Wood said, "Patents are not even in the FTC's jurisdiction. They fall under the Department of Commerce, not the Department of Justice. [Dissolving] Pillar Point will certainly help, because that was the main thing the FTC was worried about. I'm not sure they want to get into a pure patent dispute."
The cessation of lawsuits with Visx should save Summit several million dollars in legal fees. Last year, the company spent $5 million on litigation, Mr. Palmisano said. However, the agreement does not change the licensing fees that physicians will have to pay, and will have little effect on most practices' day-to-day operations.
"Both companies will continue to charge," Mr. Palmisano said. "It will avoid confusion about where the fees go."
Also, private suits by physicians against Pillar Point still remain. "Everything just doesn't stop. You have to wind these things down," Ms. Wood said.
For Your Information:
- Robert J. Palmisano can be reached at 21 Hickory Drive, Waltham, MA 02154; (617) 672-0388; fax: (617) 890-0313.
- Mark Logan and Lola Wood can be reached at 3400 Central Expressway, Santa Clara, CA 95051-0703; (408) 733-2020; fax: (408) 730-1399.