Medical Industry Week

Lumenis adds more pressure on Alma with new claims for misappropriation of trade secrets

Lumenis has filed a complaint in the Tel Aviv District Court in Israel against Alma Lasers and its four founders, Ziv Karni, Yoav Avni, Nadav Bayer and Ivgeni Kodritzki, all former employees of Lumenis , claiming misappropriation of Lumenis trade secrets and technology and for the use of such technology in Alma's primary Harmony products, which are sold worldwide.

Lumenis has requested relief from the court in the form of an injunction against the use of such core technology by Alma in its products and for monetary damages in the amount of 200 million shekels (approximately US$55 million) based on the profits earned by Alma and its founders from the use of such "Lumenis " technology. Lumenis will also be filing a similar action against Alma, the US subsidiary and distribution arm of Alma, in a Federal Court in the US.

The complaint alleges that certain core components of Alma's Harmony products are virtually identical to Lumenis components that were developed around the time the Alma founders departed from Lumenis. The lawsuit further alleges that at the time the four Alma founders left Lumenis to establish Alma, they were each involved in the development of Lumenis technology and products. Ziv Karni was the head of Lumenis' R&D, Yoav Avni was employed as a mechanical engineer, Nadav Bayer was the manager of the electronics department, and Ivgeni Kodritzki worked as an electric and electronic engineer. The claim further alleges that Alma has earned significant revenues from the sales of Harmony products. In addition, Alma's founders were said to have recently been paid substantial amounts by TA Associates as part of an investment agreement in Alma, profits which resulted from value that Lumenis says were created by its technology.

In June 2007, Lumenis filed an action against Alma for patent infringement in the US District Court in Chicago, IL, claiming that Alma infringed seven of Lumenis' patents in the design of the Harmony product. This new action alleges that Alma went even further than patent infringement and claims "outright misappropriation of Lumenis technology".