By Blake Brittain
(Reuters) - Alcon (NYSE:ALC) Vision LLC will pay Johnson & Johnson (NYSE:JNJ)'s J&J Surgical Vision Inc $199 million to settle legal battles over intellectual property related to the companies' laser eye-surgery devices, Alcon said in a press release on Sunday.
Alcon said the one-time payment would resolve "various worldwide intellectual property disputes" and that the companies had reached a cross-licensing agreement.
Representatives for Johnson & Johnson did not immediately respond to a request for comment Monday on the settlement.
A copyright trial was set to begin this week in Delaware federal court over claims that Alcon stole software from J&J's iFS Laser system, used for LASIK vision correction and other surgeries, and utilized it in Alcon's LenSx system to treat cataracts. A J&J expert had argued that the company was entitled to at least $3.1 billion in damages.
Both companies also accused each other of patent infringement in claims that had been put on hold by the Delaware court.
New Brunswick (NYSE:BC), New Jersey-based J&J's Catalys laser cataract surgery system competes with LenSx.
AMO Development LLC, which J&J acquired in 2017, sued Alcon in 2020 for allegedly stealing thousands of lines of its source code. It accused Alcon in a 2021 court filing of committing "theft and deception on a grand and shocking scale - of the type usually found in paperback novels and Hollywood movies, not real-life disputes between publicly traded companies."
J&J said Alcon left "smoking guns" in its code that showed its theft, like typographical errors identical to those in J&J's code and comments dating from before LenSx development started.
U.S. District Judge Colm Connolly said during a 2021 hearing that there was "overwhelming" evidence that Alcon intentionally copied J&J's code.
Fort Worth, Texas-headquartered Alcon had denied the allegations.
The case is AMO Development LLC v. Alcon Vision LLC, U.S. District Court for the District of Delaware, No. 1:20-cv-00842