Spectranetics and Baxter settle lawsuit

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Colorado Springs-based Spectranetics Corp. has reached a settlement with Baxter Healthcare Corp. in the patent-infringement lawsuit that Baxter filed against Spectranetics. Under the settlement agreement, Baxter and Spectranetics each release all claims and counterclaims against each other, and Spectranetics enters into a license agreement with Baxter for use of its patents in the United States and abroad until the expiration of the last patent on Nov. 15, 2005. Spectranetics also agreed to pay Baxter a royalty on specific product revenue through the life of the various patents. In addition, Spectranetics will record an income statement charge of approximately $4 million in the third quarter of 2000 to reflect the cost of past and current-year royalties through Sept. 30, 2000, and legal fees related to the suit. The cash payments for past royalties will be spread over three years.