• Teladoc giant Teladoc is suing rival Amwell for alleged patent infringement and preparing what will likely be high-profile litigation as both marks the territory of the growing telemedicine industry.
• In a lawsuit filed in Delaware District Court on Monday, Teladoc alleges that Amwell digital cars, stethoscopes, and telemedicine were involved in the intelligence Teladoc acquired in connection with its InTouch launch earlier this year. Teladoc first enacted the law in September, saying it would go to court if Amwell stopped producing and selling the product.
• The lawsuit seeks triple damages plus attorney’s fees and a court order against Amwell. Teladoc didn’t say if it was tracking a specific number, according to Chris Stensrud, Teladoc’s vice president of communications. Amwell previously denied the allegations but did not respond to a request for comment at press time.
The legal conflict between two of the biggest names in telemedicine stems from a growing interest from consumers and investors showing just how far the digital health industry could grow. During the COVID-19 pandemic, acceptance of telemedicine skyrocketed.
Teladoc acquired InTouch as part of a $ 600 million deal signed in July. With this acquisition, Teladoc acquired a portfolio of more than 130 patents and patent applications, nine of which have allegedly been infringed by Amwell of Boston. The nine disputed patents filed between 2010 and 2019 include a telemedicine cart with thermography and touch screen, as well as a documentation system for remote visits.
Teladoc claims that Amwell intentionally infringed on patents with four iterations of telemedicine carts, the Horus HD digital range system, and the Thinklabs One digital stethoscope.
Following the rape, Teladoc “suffered and will continue to suffer,” according to the suit. “Teladoc is entitled to obtain sufficient damages from Amwell to compensate for this violation in an amount to be determined by the court.”
Teladoc is also demanding reimbursement of legal fees and other compensation decided by the court.
Teladoc first threatened the lawsuit in a letter to the CEOs of Amwell Ido and Roy Schoenberg on Sept. 14 from Stat. This letter outlined the alleged patent infringements and stated that Teladoc would take legal action if Amwell did not comply with Teladoc’s requests to cease the sale and production of the products by September 18.
Amwell, who announced his intention to go public in August, said in a Sept. 15 report filed with the Securities and Exchange Commission that the claims are “unfounded” and “if Teladoc tries to accept such requests in court, we have the right to intention to defend them vigorously “.
Amwell will not suffer property damage from the loss of such equipment. In the same document, Amwell said that the Care Points device and technology business, the product category in question, accounts for only about 5% of its sales.
The two of you have already talked about patents. In 2015, Amwell sued Teladoc for allegedly interfering with a 2007 patent, although the lawsuit was eventually filed a year later.
Purchase, New York-based Teladoc continues to acquire as the pandemic leads to an unprecedented adoption of telemedicine. Teladoc bought Livongo in August for $ 18.5 billion as the industry’s first mega-merger. While the merger is underway, the two announced Monday their first cross-sale of a major health plan in Florida.
Amwell, for his part, made a $ 100 million investment from Google at the same time as the IPO and initiated a general gross proceeding of approximately $ 742 million for its initial offering in mid-September.