Legal Question in Health Care Law in California

Hospital considering sponsoring product

A local hospital was approached by a company

insisting that they had a revoluntionary product which

could revolutionize the treatment and care of elders and

other bed-ridden patients. The product is patent

pending, and allegedly contains technologies

pre-existing and borrowed from another companies

product. We are aware of the significant potential

malpractice/liability exposure that we face, however

what else should we consider? What legal issues are

at risk? How should we handle negociation with them?


Asked on 7/21/03, 1:01 pm

3 Answers from Attorneys

Re: Hospital considering sponsoring product

The real issues are patent, copyright or trademark infringement, as well as use of trade secrets.

I assume that you represent the hospital? You need to consult with a good intellectual property attorney to have him conduct a full facutal and legal analysis and to suggest mitigation measures to decrease your exposure.

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Answered on 7/21/03, 1:06 pm
H.M. Torrey The Law Offices of H.M. Torrey

Re: Hospital considering sponsoring product

from the facts given so far, i would strongly suggest including conditions in your agreement with this company on every aspect you have concerns about with this product. you should also include an indemnification clause therein as well for anything you may inadvertantly overlook. my strongest recommendation, however, would be to retain counsel in this matter asap for research purposes, drafting the agreement, and/or negotiations with this company. protect yourself as WELL as possible with such a new venture. if you would like additional legal assistance in this area, feel free to email me directly.

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Answered on 7/21/03, 1:34 pm
Mitchell Roth MW Roth, Professional Law Corporation

Re: Hospital considering sponsoring product

Mr. Floum is exactly right. Contractual indemnification is not a bad idea but only as good as the financial condition of the company to answer in damages. If they are solvent, also consider an agreement to cover the hospital's attorneys fees, or, if there is no conflict of interest in any underlying action, an agreement to accept tender of defense.

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Answered on 7/21/03, 2:12 pm


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