Under the terms of the settlement, CoolTouch expects to make payments representing a 9% royalty on sales of CoolLipo made prior to the agreement and a portion of Cynosure’s legal expenses. CoolTouch also has agreed to pay a royalty rate of 10% of future net sales for any licensed product sold strictly for lipolysis, and 7.5% of future net sales for any licensed product sold for lipolysis and at least one other aesthetic procedure.

As part of agreement with Cynosure, CoolTouch has agreed to a Consent Judgment that has been infringed on the 873 patent and that the patent is valid and enforceable. CoolTouch also has granted to Cynosure and El.En. a royalty free license to any patents or patent applications owned or controlled by CoolTouch related to the treatment of fat and/or cellulite.

The 873 patent is a component of the Smartlipo LaserBodySculpting Workstation, a system designed as an alternative to traditional liposuction in patients with areas of localised fat. The product uses a laser to deliver energy directly to subcutaneous fat cells, causing them to rupture. The emitted fat-melting energy also coagulates tissue, thus inducing collagen retraction and tissue tightening.

Michael Davin, president and chief executive officer, said: “This is a victory for Cynosure. In addition to the financial benefits of the agreement, the outcome validates the strength of our patent position in the emerging laser lipolysis industry.

“From our introduction of Smartlipo in 2006 to the subsequent enhancements we have made to the technology, we have established laser lipolysis as the gold standard for the minimally invasive removal of fat. The agreement with CoolTouch further enhances that brand and the technology behind our entire Smartlipo family of products.”