SmileDirectClub Patent on Business Is Invalidated by Judge

  • Infringement case against rival Candid Care is dismissed
  • Patent covers abstract idea, not invention, judge ruled
Photographer: Michael Nagle/Bloomberg
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A business-model patent that sent SmileDirectClub Inc. shares surging when it was issued earlier this year was invalidated by a U.S. judge, who dismissed a lawsuit the company brought against rival Candid Care Co.

The two companies compete in the expanding market for teeth-straightening products sold direct to consumers. Nashville-based SmileDirectClub makes 3D-printed aligners based on teeth impressions made in its shops or at home with a kit, with more than a million people using its products since its founding in 2014. It said the market may grow to 100 million.