LIMERICK, Pa.--(BUSINESS WIRE)--March 2, 2004--Teleflex
Incorporated (NYSE:TFX) announced today that on February 13, 2004 the
company was notified that a jury sitting in the Federal District Court
for the Northern District of Georgia had rendered a verdict against
one of its subsidiaries, Rusch, Inc., in a trademark infringement case
in the amount of $2.6 million as "reasonable royalty" and an
additional $32.2 million as "unjust enrichment." Judgment was not
entered on the verdict, and the trial judge held a hearing on February
25, 2004 on the issue of what judgment would be entered by the court.
The judge reserved judgment at the hearing pending further briefing by
the parties.
Under applicable Federal trademark law, the trial judge has the
discretion, notwithstanding a jury verdict, to determine the amount of
damages and whether damages for unjust enrichment should be awarded.
The company believes a decision on entry of judgment will be entered
in the next several weeks.
Rusch, Inc, a manufacturer of health care supply products is a
co-defendant in this case with Medical Marketing Group, Inc. (MMG).
The case involves a common law trademark claim arising under 1988 and
1997 contracts between MMG and the plaintiff, which were terminated in
1999. Rusch, Inc. acquired the business of MMG in February 2000. In
connection with the transaction, the company escrowed a portion of the
purchase price which approximates the "reasonable royalty" found by
the jury.
The company has discussed the verdict with its auditors and is
considering the appropriate accounting treatment under the
circumstances and will reach a determination, depending on the actions
taken by the court, before the filing of the company's 2003 Form 10-K.
Teleflex at a Glance:
Teleflex is a diversified industrial company with annual revenues
of more than $2 billion. The company designs, manufactures and
distributes quality engineered products and services for the
automotive, medical, aerospace, marine and industrial markets
worldwide. Teleflex employs more than 19,000 people worldwide who
focus on providing innovative solutions for customers. Additional
information about Teleflex, including a recent archived conference
call with analysts and investors, can be obtained from the company's
website on the Internet at www.teleflex.com.
Forward-looking information:
Statements in this news release, other than historical data, are
considered forward-looking statements under the Private Securities
Litigation Reform Act of 1995. These statements are subject to various
risks and uncertainties that could cause actual results to differ from
those contemplated in the statements. These factors are discussed in
the company's Securities and Exchange Commission filings.
CONTACT: Teleflex Incorporated
Julie McDowell, Vice President, Corporate Communications
610-948-2836
SOURCE: Teleflex Incorporated