Cosmetic device maker ilooda said Monday that it had signed a settlement agreement with Serendia LLC to resolve a U.S. International Trade Commission (ITC) investigation.

In March 2023, Serendia filed a complaint with the ITC, alleging ilooda’s infringement on its "invasive RF" patent.

Invasive RF is a technology that uses microneedles to deliver radiofrequency energy to the dermis of the skin and is claimed to improve the appearance of pores, fine lines, and skin texture.

The settlement provides ilooda with a license to six U.S. patents held by Serendia, including U.S. Patent No. 9,480,836. ilooda will pay Serendia the settlement amount within 10 days of the date of the agreement, Feb. 28, and the license fee by the end of the month.

The confidentiality provisions of the parties' agreement did not disclose specific amounts. However, ilooda said that it disclosed the related settlement and license amounts because they amounted to more than 10 percent of its equity capital as of the date of disclosure.

"The settlement was reached because, in light of the legal costs associated with responding to the ITC investigation and any future judicial proceedings that may be brought against us, we determined that it would be more cost-effective and risk-relieving to settle rather than continue our legal defense," an ilooda official said. "In addition to the settlement and license fees, no additional license fees will be payable on future U.S. sales in the form of running guarantees."

The official explained that given that the patent term of the settlement is until 2036, the annualized license payment was determined to be more beneficial than paying a license fee because the benefits of aggressively pursuing sales in the U.S. market outweighed the cost of paying a license fee.

"This settlement is significant, as it removes the risk of selling ilooda's Secret-family products (Secret RF, Secret Pro, and Secret Duo) in the U.S. market, and it also removes restrictions on the sale of our new high-frequency medical device products, which we plan to launch in the first half of the year," he added.