November 8, 2007

Supreme Court rules in patent case

In a high-profile patent case, the U.S. Supreme Court has ruled that a patent licensee in good standing may seek a declaratory judgment to invalidate that patent or make other challenges. The decision in MedImmune v. Genetech has been widely reported as a major ruling making it easier to challenge the validity of a patent. The AAMC had joined an amicus brief with other academic institutions specifically concerned that such a decision could overturn the "settled expectations" that universities enjoy when licensing technology to commercial firms. However, the court has concluded that limiting freedom to challenge faulty patents, which can impede innovation and development, was of more concern than the possibility that the decision could encourage licensees to litigate more freely without having to infringe the license and risk triple damages.

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