American Well has recently become a stumbling block to Teladoc’s IPO plans. The lawsuit was filed in Massachusetts District court. In this law suit, American Well requested for triple damage compensation and court fees. Also, they request the court to restrict Teladoc from continuing to do business related to the patent.

American Well through their CEO stated that Teladoc has continuously infringed their intellectual property. Though competition is essential for innovation, American Well believes that Teladoc have disregarded their ownership rights. American Well has vowed to protect all their patents and innovations. On the other hand, Teladoc have also vowed to the suit. They informed MobiHealthNews that they had already launched an official appeal to the patent board in matters regarding the patent in contest.

American Well advanced to respond to the relentless efforts by Teladoc to convince U.S. Patent & Trademark Office to nullify certain patents. According to Teladoc, the patent in controversy is invalid. Through their CEO Teladoc stated that they had been providing telehealth services prior to American Well being formed as a company.

Also, the patents are claimed to be too vast containing matters too obvious to be patented. Teladoc maintain that they will continuously defend themselves and consider the legal action as any other ordinary proceeding. They also stated that they will continue to pursue for the invalidation of American Well’s patent in question.

The controversial patent is numbered 7,590,550 that connect service providers with consumers. Included in the lawsuit is Teladoc’s S-1 form and the patent as evidence. It proceeds to highlight the similarities between the two documents. Further, there are tidbits of how American Wells declined a request by Teladoc to license them to proceed with the patent. Appeals by Teladoc to the registrations boards to nullify the patent are seen by American Well that Teladoc knowingly infringed the patent.

Though Teladoc was founded (2001) four years prior to American Wells (2006), the patent was granted in 2007.