Call it Surgical Spygate, a dispute over what Karl Storz (SPIES) and Novadaq (SPY) Technologies call their respective endoscopic imaging systems.

Novadaq, which makes the Pinpoint endoscopic imaging system, sued Karl Storz last year, alleging that the company infringed on Novadaq's SPY trademark for its fluorescence-imaging technology. Soon after a judge ruled that the case would go to trial, Karl Storz announced that it would stop using the SPIES name when it launches a new generation of its endoscopic imaging system next year.

The dispute started back in 2001, according to court records. As Novadaq was developing fluorescent imaging, it registered a trademark for the technology, calling it SPY. Four years later, it launched its first SPY-based imaging system and continued to develop products with what it calls in court records "proprietary SPY fluorescent imaging technology."

Novadaq began showing off a new endoscopy imaging system, initially called SPYSCOPE, around 2009. The company alleges in court documents that it gave the head of Karl Storz a personal demonstration of the system at a trade show that year. However, by the time Novadaq started selling the device in 2012, it had renamed the endoscopy system Pinpoint, though it advertised that it included Novadaq's SPY technology.

In the meantime, Karl Storz updated its endoscopic imaging technology in 2010, court records state. It called the new-generation system Image 1 SPIES — short for Storz Professional Imaging Enhancement System — and applied for a trademark. The SPIES system launched in America in spring 2014.

The familiar name caught the attention of Novadaq, which sued Karl Storz in October 2014, claiming the company had infringed on its original SPY trademark. In court documents, Novadaq alleges that Karl Storz purposefully used the name to confuse customers and draw business away. However, Karl Storz rejected these allegations in court, arguing that SPIES was distinct and not an infringement on Novadaq's trademark.

Last month, a court ruled that while Karl Storz did not appear to deliberately use the name to mislead customers and inflict monetary damages, the similar names might unintentionally confuse customers and therefore infringe on the trademark. The judges ordered the case go to trial.

Then on Wednesday, Karl Storz attempted to stifle the lawsuit by filing a pre-trial statement saying that it is preparing to launch a fourth generation IMAGE 1 endoscopic imaging system, which will feature 3D and, pending FDA approval, an ICG fluorescence imaging modes. The company says in the filing it will "permanently abandon use of the SPIES sub-brand on all IMAGE 1 systems" by March 31, 2017.

"Karl Storz intends to implement these plans for its IMAGE 1 product line regardless of the outcome of this case, and accordingly believes this eliminates any justiciable controversy between the parties regarding Karl Storz's use of SPIES," the filing reads. According to public records, the 2 companies are still set to meet for a pre-trial conference later this month, with a jury trial scheduled for January 2016.

The law firm representing Novadaq declined to comment on the case. Attorneys representing Karl Storz did not return requests for comment from Outpatient Surgery.

Kendal Gapinski