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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 Mike Baker wouldn't comment on the pending litigation. "As a matter of company policy, we never talk about enforcement actions," he says

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