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For One Small Device Company, A Big Company IP Strategy

Unlike many small medical device companies, Arthrocare insists it can implement an aggressive IP enforcement strategy because it has built a strong patent network around fundamentally new technology. Not only do the lawsuits stop patent infringers, they also give Arthrocare leverage it needs to initiate cross-licensing and licensing deals, gaining access to other important technologies. But inherent in this approach is a risk: uncertainty.

For the third time in just about as many years, ArthroCare Corp. , developers of the innovative Coblationtechnology used in orthopedic and a variety of other clinical applications, has sued a significantly larger rival, alleging patent infringement. ArthroCare's latest target: arthroscopy leader Smith & Nephew Dyonics Inc. , a division of Smith & Nephew PLC .

No one's keeping records, but ArthroCare's aggressive patent defense surely must place it among the most active small device companies in its willingness to pursue IP enforcement actions. ArthroCare CEO...

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