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Biotech / Medical : VISX
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To: majormember who wrote (605)6/16/1998 4:09:00 PM
From: Jim Mac  Read Replies (3) of 1754
 
You're forgetting that Visx holds the fundamental procedure patents for tissue-ablating LVC. Novatec users will have to pay Visx procedure royalties.

Keep in mind that Visx and Summit don't have to license anyone. They could monopolize the industry until their patents expire years from now. If they wanted to, they could open their own laser centers and hire doctors to zap for them, requiring any new entrants to design around their patents.

But they're choosing to license instead, to encourage the innovation which will lead to rapid growth of this market. They will benefit from this by sitting back and collecting procedure royalties on their intellectual property. Novatec is no threat, Novatec is another money-maker for Visx.
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