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Medimmune v. Genentech and Its Aftermath

By Dan L. O'Korn
May 30, 2007

A rare U.S. Supreme Court decision in January 2007 may change the way parties negotiate patent license agreements in the future. The Medimmune, Inc. v. Genentech, Inc. decision has reversed the mainstream position that a patent licensee must discontinue paying royalties to challenge its obligation to pay royalties in a court of law. At face value, the decision might appear to be of little impact to parties of a patent license agreement. However, it could have a dramatic effect on how they approach the negotiation of a license agreement. In addition, the Medimmune decision has already been applied to patent infringement cases outside of the scope of licensing arrangements.

Medimmune Background

Genentech licensed certain patent applications (and any patents issued thereunder) to Medimmune. When a 'Genentech Patent' was issued under one of the applications, Genentech notified Medimmune that it expected royalties on sales of Medimmune's Synagis product.

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