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Illumina to Pay Syntrix $70M to Settle IP Fight

NEW YORK(GenomeWeb) – Illumina said after the close of the market on Friday that it will pay Syntrix $70 million to settle a dispute in which Syntrix alleged Illumina had infringed its patent.  

Illumina disclosed the settlement deal in a document filed with the US Securities and Exchange Commission, saying it will pay Syntrix and its sole shareholders John Zebala and Amy Zebala. In exchange, Illumina will be released from past damages claimed and receive an exclusive license to US Patent No. 6,951,682. Illumina said that it had accrued $149 million for past damages related to the dispute. 

The patent pertains to "articles comprising substantially uniform porous coatings, which may be photopatterned," according to the patent abstract. The use of the porous coatings increases the surface density of compounds attached within ligand arrays, for example, and "[a]rrays prepared using the porous coatings may be used within a variety of diagnostic and drug discovery assays," the abstract said. 

Syntrix, based inAuburn,Wash.,sued Illumina in 2010 accusing the company of IP infringement, trade misappropriation, breach of contract, and unjust enrichment. Syntrix said that Illumina based its array products on technology that Syntrix originally developed and provided confidentially to Illumina more than a decade ago while the two companies were in discussions about a possible business relationship.

GenomeWeb last week reported that the two companies had reached a settlement but had not disclosed the terms yet.