UPDATE 1-Boston Scientific gets favorable patent ruling

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LOS ANGELES, May 5 (Reuters) - Medical device maker Boston Scientific Corp (BSX.N: Quote, Profile, Research) said on Monday that an arbitration panel of the United Nation's World Intellectual Property Organization ruled that the company's stents do not infringe patents held by Israel's Medinol Ltd.

Medinol, which had requested the arbitration, claimed that Boston Scientific's Liberte and Taxus Liberte drug-coated stents infringed various U.S. and European patents held by Medinol.

According terms of an earlier settlement deal, Medinol can appeal to another WIPO panel, Boston Scientific said in a statement.

The company said in March that it had received conditional approval from U.S. regulators for the Taxus Liberte system, which is designed to be more flexible to insert into a blood vessel than the company's market-leading Taxus Express stent.

Stents are small wire-mesh tubes used to open arteries after doctors have cleared them of blockages.

Boston Scientific has been working to address quality issues raised by the U.S. Food and Drug Administration in a corporate warning letter in January 2006. Removal of the warning letter would clear the way for the roll-out of new products.

The company's shares closed down 13 cents at $13.29 on the New York Stock Exchange on Monday. (Reporting by Deena Beasley and Esha Dey; Editing by Deepak Kannan, Toni Reinhold)