Lexis Hub for New Attorneys: Practice Area Insights: Emerging Trends in IP: Licenses Between Patent Holders and Licensees Are Likely to Change Because of the Supreme Court's Decision in Medlmmune, Inc. v. Genentech, Inc.:


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Emerging Trends in IP

1/24/2008 7:58:46 PM EST

Licenses Between Patent Holders and Licensees Are Likely to Change Because of the Supreme Court's Decision in Medlmmune, Inc. v. Genentech, Inc.

Posted by AME3bg

In MedImmune, Inc. v. Genentech, Inc., 127 S. Ct. 764 (2007), the United States Supreme Court held that a court has jurisdiction over a “nonrepudiating licensee” declaratory suit, at least in instances in which the patent owner has threatened, implicitly or explicitly, to enforce the patent upon nonpayment of royalties on the licensee’s products and the threat would cause major harm to the licensee’s business. Since a licensee can ask for a declaratory judgment that the licensed patent is invalid before breaching a license, patent holders will attempt to discourage patent challenges.

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