Smith & Nephew Endoscopy Patent Infringement Case Against Arthrex Proceeds to Oregon Court on June 13

ANDOVER, Mass., June 7, 2011 /PRNewswire/ -- Smith & Nephew, Inc., Endoscopy Division, a subsidiary of Smith & Nephew plc (NYSE: SNN) (London Stock Exchange: SN) announced today that the next phase of its patent infringement case against Arthrex Inc. (Naples, Fla.) -- claiming that use of Arthrex's Bio-SutureTak, PEEK SutureTak and PushLock suture anchors infringe a U.S. patent owned by Dr. John O. Hayhurst and under exclusive license to Smith & Nephew Endoscopy -- will be heard this month in Oregon.

A brief history of the case:

• The asserted patent (U.S. Patent Number 5,601,557) covers the use of Smith & Nephew's TAG™ WEDGE, TAG™ ROD, and BIORAPTOR™ Suture Anchors used primarily in surgical repair of the shoulder.
• In June, 2008, a jury in U.S. District Court in Oregon decided that Arthrex willfully infringed the asserted patent.  The jury awarded Smith & Nephew $14.7 million for past infringement.
• In the spring 2009, The United States Patent & Trademark Office (USPTO) overruled Arthrex's validity challenges to the claims of this patent.
• In November, 2009, The Court of Appeals for the Federal Circuit revised the interpretation of a term in the patent and sent the case back to the Oregon court for a new trial based on that revised claim interpretation.

Smith & Nephew is seeking substantially more damages than originally awarded at the new trial which begins on June 13.  Additional products from Arthrex's SutureTak and PushLock families of suture anchors were added to this dispute, as well as another lawsuit also pending in Oregon.

"We will continue to protect our original products and intellectual property from companies we believe are infringing our patents and profiting from our innovation," commented Mike Frazzette, president, Smith & Nephew Endoscopy.

Texas patent infringement case against Arthrex

Smith & Nephew Endoscopy sued Arthrex nearly four years ago, claiming that Arthrex's Retrobutton Femoral Fixation device infringed a U.S. patent owned by Smith & Nephew Endoscopy.  The patent asserted in the claim covers Smith & Nephew's ENDOBUTTON™  Fixation Device and similar devices for attaching tissue grafts to bone during arthroscopic surgery in the knee.

The United States District Court for the Eastern District of Texas ruled in Smith & Nephew's favor and found privately-held Arthrex Inc., liable for infringing U.S. Patent 5,645,588.  The jury awarded Smith & Nephew $4.7 million for Arthrex's past infringement.

Arthrex appealed the decision in the Texas case.  That appeal was heard by The United States Court of Appeals for the Federal Circuit in April 2011.  A decision is expected soon.

™Trademark of Smith & Nephew

Contact: Joe Metzger
SVP, Corporate Communications
Smith & Nephew Endoscopy
(978) 749-1330
[email protected]

About Smith & Nephew

Smith & Nephew is a global medical technology business with global leadership positions in Orthopaedics, including Reconstruction, Trauma and Clinical Therapies; Endoscopy, including Sports Medicine; and Advanced Wound Management.  Smith & Nephew is a global leader in arthroscopy and advanced wound management and is one of the leading global orthopaedics companies.

Smith & Nephew is dedicated to helping improve people's lives.  The Company prides itself on the strength of its relationships with its surgeons and professional healthcare customers, with whom its name is synonymous with high standards of performance, innovation and trust.  The Company has distribution channels, purchasing agents and buying entities in over 90 countries worldwide.  Annual sales in 2010 were nearly $4.0 billion.

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& Nephew's most recent annual report on Form 20-F, for a discussion of certain of these factors.

Any forward-looking statement is based on information available to Smith & Nephew as of the date of the statement. All written or oral forward-looking statements attributable to Smith & Nephew are qualified by this caution.  Smith & Nephew does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances or in Smith & Nephew's expectations.

SOURCE Smith & Nephew, Inc.

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