Ropes & Gray Wins Attorneys’ Fees on Behalf of CardioNet (BioTelemetry) After Obtaining Contempt Findings Against MedTel24

On February 2, 2016, the Hon. Juan R. Sanchez of the Eastern District of Pennsylvania issued a third and final Order awarding the full amount of attorneys’ fees sought by CardioNet LLC—nearly $1 million—after issuing two prior orders finding MedTel24, Inc. in contempt of a Consent Judgment and awarding lost profits to CardioNet.  Judge Sanchez previously issued an October 2, 2015 Order finding MedTel in contempt and ordered MedTel to deliver to CardioNet, within 21 days, all software, source code, hardware, and documentation related to MedTel’s infringing Heartrak ECAT system for monitoring cardiac signals.  The October Order provided for a fine of $10,000 per day against each of MedTel and Mr. Lee Sanders, the CEO of MedTel, for each day beyond the 21 days that MedTel fails to deliver the materials.  The November 23, 2016 Order found MedTel in violation of additional provisions of the Judgment and awarded to CardioNet its lost profits of nearly $850,000 during the period of contempt. 

The three Orders follow oral argument on May 7, a 30-day period of expedited discovery, and a bench trial on September 21 and 29. The Orders resolve years of litigation between CardioNet and MedTel in the field of mobile cardiac telemetry.  CardioNet filed a patent infringement suit in May 2012 against multiple defendants, including MedTel.  In January 2014, one day before trial was set to begin, the Court entered a Consent Judgment, agreed-to by all defendants, declaring that all five asserted CardioNet patents are valid, enforceable, and infringed.  The Judgment provided MedTel a one-year period to phase out its infringing Heartrak ECAT cardiac monitoring system.  But at the end of that year, MedTel continued its infringing activities and instead challenged the enforceability of the Judgment.  Simultaneously, CardioNet filed a motion for contempt of the Judgment and for damages and sanctions against MedTel.  On July 22, 2015, the Court upheld the enforceability of the Judgment.    

CardioNet is a pioneer in the field of mobile cardiac telemetry, and has invested well over $100 million in developing and commercializing its patented technology.  After CardioNet introduced its flagship product, the MCOT (Mobile Cardiac Outpatient Telemetry), to the market, many companies began offering their copycat products.  The litigation against MedTel is one in a series of patent infringement actions brought by CardioNet to enforce its hard-earned patents, including against MedNet Healthcare Technologies, Inc., HeartCare Corp. of America, Universal Medical Inc., Universal Medical Laboratory, Inc., RhythmWatch LLC, AMI Cardiac Monitoring, Inc., The ScottCare Corporation, Ambucor Health Solutions, Inc., and InfoBionic, Inc.