Iowa Insurance Company to Pay $13 Million in Patent Case

A Cedar Rapids-based insurance company has been ordered to pay about $13 million in a patent infringement case.

A federal jury in Cedar Rapids returned the judgment recently against Transamerica Life Insurance Co., a subsidiary of Aegon.

Transamerica had asked that a patent held by Indiana-based Lincoln National Life Insurance Co. be declared invalid.

The patent involves a computerized method for administering a variable annuity benefit plan. It was issued in August 2006.

The jury found the patent valid and ordered Transamerica and another Aegon company, Ohio-based Western Reserve Life Assurance Co., to pay 11 percent of $11.9 billion. The amount was based on assets in the companies’ variable annuity products during the infringement period.

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Information from: The Gazette, http://www.gazetteonline.com/