Given Imaging to settle patent litigation with Olympus

The term sheet includes certain worldwide cross-licenses under which each party receives a royalty-free license under all existing patents of the other party for its respective existing capsule endoscopy products. The parties also exchanged covenants not to sue on currently available medical device products and agreed to a release of all past causes of action.

The term sheet also includes a cross-license under existing and future patents of each party for future capsule endoscopy products, which may include the payment of royalties by either party at a rate to be determined through an agreed upon mechanism. Finally, the term sheet includes a payment to Given Imaging of $2.33 million and an agreement to cooperate in future mutually beneficial joint market development projects.

The settlement will become final upon the signing of a formal written agreement, which is currently being prepared and is expected to be signed as soon as possible. In the interim, the parties have agreed to ask the Court to stay all activity in the pending litigation. Following signing of the formal agreement, the parties will submit to the Court a request for dismissal of the lawsuit.