Byline: Janet Moore; Staff Writer

A federal jury on Tuesday ordered Medtronic Inc. to pay the inventor of many of its popular spinal technologies about $110 million - and perhaps more - for infringing on his patents and violating contracts struck between the two.

While the amount is far less than the $1.7 billion initially sought by the inventor, Dr. Gary Michelson, the jury found he is entitled to as-yet-unspecified punitive damages. The amount is likely to be determined next week.

The ruling is a blow to the reputation of Fridley-based Medtronic, which prides itself on being one of the most-admired companies in the country, as well as its high-flying $1.8 billion spinal business, Sofamor Danek. The same division is being investigated by the Department of Justice for unrelated claims that it paid illegal kickbacks to doctors.

Medtronic also must pay an estimated $49 million for infringing on the doctor's patents, including one covering a popular spinal device used to treat patients suffering from degenerative disc disease.

Wall Street analysts say the combined $159 million in estimated damages is a mere blip for a company with $9 billion in annual revenue. "The amount of money Medtronic has to pay is minimal," said Jan David Wald, an analyst with A.G. Edwards in Minneapolis.

Because Medtronic was found to infringe on several patents, U.S. District Judge Jon Phipps McCalla could issue an injunction against the company prohibiting it from selling many of the Michelson-patented products that make up its spinal business.

But analysts said that is highly unlikely. "The argument against that has always been strong, that these devices are treating sick people," said Thomas Gunderson, an analyst with Piper Jaffray & Co. in Minneapolis.

Lawyers for Michelson, an orthopedic surgeon based in Los Angeles, declined to comment on the verdict...