Candela Ordered to Pay More Royalties

Candela, a maker of medical lasers, said that an arbitrator ordered the company to pay additional royalties to the patent holder of technology used in Candela's dynamic-cooling device.

According to the interim decision, Candela must pay royalties to the Regents of the University of California for the device, and also for each of four laser systems when they are sold with the cooling device. Previously, Candela paid royalties for the device only when it was sold with its Sclero, SPTL, GentleLASE and GentleYAG lasers.

Candela said the arbitrator will issue a final decision with actual damages after both parties submit their calculations of damages owed. Because the decision on the primary issue favored Regents, Candela will have to reimburse Regents for costs and fees from the arbitration, as well as pay any unpaid royalties computed in the final judgment. The arbitrator denied the Regents' request to rescind Candela's license to the technology, and also ruled in Candela's favor on monetary disputes regarding past royalty payments to Regents.