Former employee has filed a lawsuit for compensation
A former employee has filed a lawsuit against C-RAD AB claiming compensation for an invention made during the employment. C-RAD strongly rejects the lawsuit and considers the compensation claim to be highly excessive, if at all legitimate.
The invention in question was patented during the time when the former employee was employed within the C-RAD group and the patent rights are held in C-RAD Positioning AB. In principle a right to compensation as such is not disputed. C-RAD has offered a lumpsum amount for total compensation to the former employee, in line with market practice, which also has been confirmed by a leading legal expert on compensation within intellectual property.
The former employee is claiming a compensation of 21.9 MSEK, which alone is estimated to be more than 50 times market practice. Furthermore, the former employee wants a royalty of five percent of sales generated by the products based on the invention. In C-RAD's view the claim is grossly exaggerated and completely unrealistic, if at all legitimate.
“I feel very confident that the offer made by C-RAD is very reasonable based on applicable law and market conditions. Based on all legal input we have obtained a claim in the magnitude he is asking for is by far exceeding any market standards.”, says Tim Thurn, CEO of C-RAD
This is the fourth in a series av disputes with the company where the counterpart was either the same former employee or the company Beamocular AB (owned by the former employee and now in bankruptcy) for which he has been CEO. In all three earlier cases C-RAD prevailed. One of the cases has been appealed and the appeal is pending with the Patent and Market Court in Stockholm.
For further information:
Tim Thurn, CEO C-RAD AB
Phone: +46 (0)722 044 482, E-mail: tim.thurn@c-rad.com
Phone: +46-18-666930, Email: investors@c-rad.com
This information is information that C-RAD AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 13:25 CET on May 9, 2020.
About C-RAD
C-RAD develops innovative solutions for use in advanced radiation therapy. The C-RAD group offers products and solutions for patient positioning, tumor localization and radiation treatment systems. All product development is conducted in three fully owned subsidiaries: C-RAD Positioning AB, C-RAD Imaging AB and C-RAD Innovation AB, all of which are located in Uppsala, Sweden. C-RAD has established three companies for direct sales: C-RAD Inc. in the US, C-RAD GmbH in Germany and C-RAD (Shanghai) Medical Devices Co Ltd. In China. Cyrpa International SPRL, a Franco-Belgian laser company, is a wholly owned subsidiary whose operations are integrated. C-RAD AB is listed on NASDAQ Stockholm.
For more information on C-RAD, please visit http://www.C-RAD.com.