Decision Diagnostics sues J&J’s LifeScan over glucose test strip patents

Decision Diagnostics (OTC:DECN) said today its subsidiaries Decision IT and Pharma Tech Solutions filed a lawsuit against Johnson & Johnson (NYSE:JNJ) and its Lifescan divisions over patent infringement related to glucose testing strips, looking for compensation between $400 and $700 million.

The Los Angeles-based company said the patent infringement case centers around 3 features and 2 patents which the company’s subsidiaries own.

Decision Diagnostics said the case centers around a test strip featuring 3 electrodes with 2 operating through utilization of the same reference electrode, test strip and meters in which multiple readings are taken at each of the 2 working electrodes over a short period of time and test strip tech that compares measurements between 2 working electrodes to assure each are within a fixed percentage.

“It is with great regret that we are now forced to confront J&J/Lifescan with our discovery of their multiple violations of the integrity of our justly awarded patents. Nonetheless, it is incumbent on us as responsible professionals to alert the diabetic patient market of these gross violations of legality. It is also our sacred fiduciary responsibility to all of our shareholders to seek appropriate compensation to rectify this now lengthy period of ongoing patent infringement,” Decision Diagnostics principal exec Keith Berman said in a press release.

The company said those features “enabled and propelled” its Lifescan OneTouch Ultra blood glucose system on the marketplace, and that each feature are fully owned by Decision Diagnostics subsidiaries.

“J&J/Lifescan has prosecuted its illicit and extra-legal campaign against our products and company for 4+ years. We have weathered every storm and won each of the critical legal confrontations. We will continue to battle and win on those fronts. This filing against J&J/Lifescan will no doubt be cause for personal vindication amongst our shareholders. Although, our actions do possess a semblance of retributive justice, it is greatly disappointing that an entity of their magnitude would be reduced to appropriating the technological breakthroughs of others to achieve their own financial objectives. The judgment from this litigation will undoubtedly properly readjust their attainment of those objectives. It is important to note that although amply justified, we will not pursue similar underhanded and legally questionable threats of intimidation against their customers or the customers of their customers should these entities purchase the Lifescan patent violated product during the course of this litigation, as Lifescan/J&J repeatedly did to our customers and the customers of our customers. We have always tried to maintain higher standards of integrity and expect to continue to do so,” principal exec Berman said in a prepared statement.

In January, a federal appeals court upheld a U.S. Patent & Trademark Office decision that a blood glucose testing patent owned by JNJ subisidary LifeScan is invalid.

The U.S. Court of Appeals for the Federal Circuit’s per curiam decision, issued without comment, was a win for Decision Diagnostics subsidiary PharmaTech Solutions and its GenStrip 50 test strip. PharmaTech designed the GenStrip 50 to work with LifeScan’s OneTouch Ultra glucometer line, Decision Dx said.

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