Teladoc sues Amwell for patent infringement
Two leading companies in the booming telehealth segment disagree and will likely face each other in court. Teladoc (NYSE: TDOC) continues American Well (NYSE: AMWL) for patent infringement on a digital telescope and a stethoscope, the latter sells.
Earlier this week, it emerged that Teladoc had formally charged American Well (also known as Amwell) in a letter sent by its lawyers to Amwell’s management in mid-September. Teladoc believes that the patents it obtained in acquiring healthcare technology specialist InTouch Technologies were infringed by two Amwell products, the Horus HD Digital Scope System and the Thinklabs One Digital Stethoscope.
In total, Teladoc accuses Amwell of having infringed nine of its patents. In the letter, Teladoc demanded that Amwell immediately stop selling and using the offending products and respond to its charges by September 18.
It is not known if or when Amwell sent a formal response. He has not issued an official statement on this matter, although he did refer to the letter in the registration statement that he filed with the Securities and Exchange Commission prior to its release. IPO last month. The company wrote that “we believe these claims lack merit and, if Teladoc attempts to take these claims to court, we intend to vigorously defend against them.”
Amwell pointed out that sales of the disputed products represented less than 5% of its 2019 revenue.
This may not be a heartwarming thought for investors; On Wednesday, they traded Amwell’s stock down 2.9%, a steeper drop than the S&P 500 index suffered that day.
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