Cochlear (ASX:COH) share price down 4% on US patent infringement complaint

Cochlear’s shares are ending the week in the red…
The post Cochlear (ASX:COH) share price down 4% on US patent infringement complaint appeared first on The Motley Fool Australia. –

The Cochlear Limited (ASX: COH) share price is on course to end the week in the red.

In morning trade, the hearing solutions company’s shares are down 4.5% to $226.26.

Why is the Cochlear share price tumbling lower today?

Investors have been selling down the Cochlear share price this morning after it released an announcement.

As you might have guessed from the share price reaction, the announcement wasn’t a positive one.

According to the release, a complaint has been made by the University of Pittsburgh against Cochlear for patent infringement. It has been filed by the University in United States District Court for the Western District of Texas, Waco division.

The release explains that the complaint names Cochlear and USA subsidiaries Cochlear Americas Corporation and Cochlear Clinical Services as defendants.

Cochlear to defend the lawsuit

Cochlear believes that none of its products infringe the University’s patent and will defend the lawsuit.

The company also highlights that its legacy products and related patents predate the University’s patent by several years. These earlier legacy products and patents embody the alleged invention of the patent and, accordingly, Cochlear believes the patent is invalid.

The patent in question is related to a wireless energy transfer system. It was filed at the US Patent Office in 2009 and will expire in 2030.

The company also advised that the lawsuit is not expected to disrupt Cochlear’s business or customers in the United States.

What now?

While the company appears confident in its ability to defend the lawsuit, the Cochlear share price performance would indicate that the market has a few niggling doubts.

Which is understandable given its multi-year courtroom battle with the Alfred E. Mann Foundation for Scientific Research (AMF) and Advanced Bionics (AB).

Late last year the company was ordered to pay AMF and AB US$280 million in patent infringement damages following a six-year legal dispute.

Cochlear shareholders will be hoping this latest patent infringement complaint doesn’t end up the same way.

The post Cochlear (ASX:COH) share price down 4% on US patent infringement complaint appeared first on The Motley Fool Australia.

Should you invest $1,000 in Cochlear right now?

Before you consider Cochlear, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cochlear wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

4 ASX shares going ex-dividend today

Why has the Cochlear (ASX:COH) share price been struggling lately?
These 5 ASX 200 shares are going ex-dividend this week

The Cochlear (ASX:COH) share price is down 8% in 4 weeks. Is it a buy?
How have ASX healthcare shares performed during the August 2021 earnings season?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!