GE pays Fonar $128.7 million for lawsuit

July 9, 1997

GE last week paid Fonar $128.7 million for damages in the MRI patent infringement case Fonar is pursuing against the Milwaukee company. The payment does not mean the case is over for GE, however, as the company intends to continue its appeal of the case

GE last week paid Fonar $128.7 million for damages in the MRI patent infringement case Fonar is pursuing against the Milwaukee company. The payment does not mean the case is over for GE, however, as the company intends to continue its appeal of the case to the U.S. Supreme Court.

GE owed Fonar $103 million plus interest after losing a jury trial regarding the infringement of two Fonar patents, the multiangle oblique patent and the so-called basic patent (SCAN 6/11/97). GE has lost several appeals of the case, including one to the U.S. Court of Appeals, as well as a motion to have its payment of the damages postponed.

While GE made the payment as ordered by Judge Leonard Wexler, who presided over the case, GE still plans to appeal the case to the Supreme Court, a spokesperson said. If GE wins its appeal, Fonar will be required to return the money.

In other Fonar news, the Melville, NY, company said it has signed an agreement for sales of its Quad scanners with a medical equipment supplier based in the Far East. The first phase of the agreement calls for sales of five scanners in two years. If that phase is successfully completed, phase two will kick in, in which some Quad scanner assembly may occur in Asia. Before the second phase can begin, however, Fonar must receive orders for 40 Quad scanners, backed by a letter of credit for a minimum of $29 million. Fonar declined to name the company with whom it has signed the agreement.