8-KOther Events

DANAHER CORP /DE/ 8-K Report, Corporate Update (Oct 28, 2004)

Filed October 28, 2004For Securities:DHR

Summary

This Form 8-K filing from Danaher Corporation (DHR) reports on a significant development in a patent infringement lawsuit concerning a subsidiary acquired in 2002. A federal jury had previously found the subsidiary liable for willful infringement of two patents related to infrared thermometer sighting technology, awarding approximately $8 million in damages. On October 26, 2004, the judge trebled these damages to $24 million and ordered the subsidiary to pay the plaintiff's legal fees. Despite this unfavorable court order, Danaher management stated their belief in having strong grounds for appeal and their intention to vigorously pursue reversal. Crucially, the company highlighted that the acquisition agreement for the subsidiary includes indemnification provisions for such matters. Consequently, Danaher's management does not anticipate this legal issue having a material adverse effect on the company's consolidated financial results or condition.

Key Highlights

  • 1Danaher subsidiary found to have willfully infringed two patents related to infrared thermometer sighting technology.
  • 2Original jury award of approximately $8 million in damages has been trebled by a judge to $24 million.
  • 3The subsidiary has also been ordered to pay the plaintiff's legal fees.
  • 4Danaher believes it has meritorious grounds to appeal the judge's order and intends to pursue reversal.
  • 5Indemnification provisions in the 2002 purchase agreement for the subsidiary are in place.
  • 6Management does not expect these legal matters to materially impact Danaher's consolidated financial condition or results of operations.

Frequently Asked Questions

The main event is the judge's order on October 26, 2004, to treble the damages awarded against a Danaher subsidiary in a patent infringement case to $24 million and to pay the plaintiff's legal fees. This followed a jury finding of willful infringement related to infrared thermometer sighting technology.

Danaher Corporation believes it has strong grounds to appeal the judge's order and intends to vigorously pursue all available means to achieve a reversal of the decision.

Danaher's management does not expect these matters to have a material adverse effect on the company's consolidated results of operations or financial condition, largely due to indemnification provisions in the purchase agreement under which the subsidiary was acquired in 2002.

The subsidiary was acquired in 2002. The patent infringement action relates to sighting technology for infrared thermometers, where a jury found the subsidiary willfully infringed two patents.