Market Overview

Lawsuit Against Align Technology for Alleged Abuse of Monopoly Power

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3Shape, a leading innovator and manufacturer of 3D digital scanners and
CAD/CAM software solutions for dental practices and labs, today filed a
lawsuit against Align Technology for allegedly acting illegally to block
competition in the marketplace for scanners for orthodontic treatment,
including clear aligners.

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https://www.businesswire.com/news/home/20180828005586/en/

3Shape has filed a lawsuit against Align Technology for alleged abuse of monopoly power in the denta ...

3Shape has filed a lawsuit against Align Technology for alleged abuse of monopoly power in the dental scanner and clear aligner markets. (Photo: Business Wire)

The lawsuit, styled 3Shape TRIOS A/S v Align Technology, Inc., was
filed in the U.S. District Court for the District of Delaware.

"Align is illegally holding on to their monopoly of clear aligners after
expiry of many of their patents, by effectively forcing dental
professionals to buy Align's intraoral scanner which, with regard to
clear aligners and for most practical purposes, is only used for Align's
own clear aligner product Invisalign," said Wendelynne J. Newton,
Counsel for 3Shape.

Align is the manufacturer of the Invisalign brand of clear aligners for
orthodontic treatment, as well as the iTero intraoral scanner. As
Align's patents for Invisalign have already begun to expire, among
others 4 of the world's largest and most esteemed dental companies have
challenged Align's dominant position with alternative clear aligner
products.

3Shape innovated the 3Shape TRIOS intraoral scanner which has been named
the best intraoral scanner by the industry for five years in a row, and
the most accurate in an independent ADA study. TRIOS is also the world's
only wireless intraoral scanner. 3Shape TRIOS has thus become a favorite
among doctors for restorative treatment as well as for clear aligners,
competing directly with Align's own iTero scanner. This appears to have
stimulated a series of anticompetitive actions by Align.

According to the lawsuit, Align is trying to hold on to its monopoly in
the clear aligner market by blocking the ability of their strongest
scanner competitor from being used in the fitting of Invisalign, and
thereby effectively blocking dentists from choosing any other scanner
than Align's iTero for clear aligner treatments. This is also underlined
by the launch of Align's new Invisalign GO Treatment system, which is
accessible with iTero only.

"3Shape believes in fair competition and in giving doctors choices
rather than limiting them. Align's behavior represents the opposite of
how 3Shape sees the dental industry should evolve for the benefit of
doctors and their patients," said Lars Christian Lund, Vice President,
Corporate Business Development and Marketing at 3Shape. "More and more
dentists are expressing outrage at Align's methods that ultimately make
their services more expensive for their patients.''

Unlike Align's scanner, the 3Shape TRIOS scanner is an open platform
that directly interfaces to multiple clear aligner and orthodontic
solution providers. An open platform allows dentists and patients to
choose the best treatment solution for each case while driving down
costs. By forcing dentists to use Align's iTero scanner with Invisalign,
they are creating for all intents and purposes an impenetrable closed
market that obstructs competition.

About 3Shape

3Shape is changing dentistry together with dental professionals across
the world by developing innovations that provide superior dental care
for patients. Our portfolio of 3D scanners and CAD/CAM software
solutions for the dental industry includes the multiple award-winning
3Shape TRIOS intraoral scanner, the upcoming 3Shape X1 CBCT scanner, as
well as market leading scanning and design software solutions for both
dental practices and labs.

Two graduate students founded 3Shape in Denmark's capital in the year
2000. Today, 3Shape has over 1,400 employees serving customers in over
100 countries from an ever-growing number of 3Shape offices around the
world. 3Shape's products and innovations continue to challenge
traditional methods, enabling dental professionals to treat more
patients more effectively. www.3shape.com.

*Contact 3Shape resellers regarding availability of products in your
region or country.

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