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Patent Law Keyed to Adelman
MedImmune, Inc. v. Genentech, Inc.
Facts
Genentech, Inc. (Defendant) licensed an existing patent and a pending patent to MedImmune, Inc., a drug manufacturer. The pending patent became a patent and Defendant notified Plaintiff it would owe royalties on the new patent. Plaintiff did not believe the new patent was valid and was not infringed by its drug, therefore no royalties were owed. Plaintiff did not want to risk the results of an infringement suit, so it paid the royalties under protest and filed a declaratory judgment action against Defendant. The suit was dismissed by the district court on grounds that the existence of the license agreement "obliterates any reasonable apprehension" of an infringement suit. Defendant successfully argued that Plaintiff had failed to meet the justiciability "case or controversy" requirement of Article III jurisdiction over declaratory judgment actions. Plaintiff appealed.
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