iCAD patent suit settled

A patent infringement suit filed by a competitor against Nashua-based iCAD Incorporated has been settled through arbitration, the company announced.

On April 18, 2005, R2 Technology Inc. of Grand Rapids, Mich., alleged that iCAD infringed on two of its patents in iCAD’s Second Look product lines, including its early detection system for breast cancer.

In filings to the Securities and Exchange Commission, iCAD said that the patents in question were “continuations in part of the patents already licensed to iCAD by R2 under a September 2003 settlement agreement that resolved certain patent infringement litigation between iCAD and R2” at that time.

In mid-October 2005, iCAD then brought before a panel of three arbitrators a countersuit against R2 — its leading competitor — alleging similar complaints on different patents.

According to a statement released Thursday by iCAD, the arbitrators rejected R2’s claims against iCAD and found that R2 did not infringe on iCAD’s patents.

iCAD’s stock price surged over 18 percent, rising to $1.89 a share at the close of trading on Thursday. —CINDY KIBBE