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Genentech/City of Hope suit starts

August 28, 2001 7:00 AM UTC

Jury selection began on Tuesday for a suit filed in 1999 by the City of Hope National Medical Center against Genentech (DNA) in the Los Angeles County Superior Court. The suit relates to a 1976 deal between the parties, under which DNA received rights to research by two City of Hope scientists, including patents on producing human insulin in bacteria, and patents on human growth hormone. In exchange, DNA said it was to pay a 2% royalty on polypeptides sold by DNA or its licensees.

At the heart of the dispute is the interpretation of when the royalty is owed. DNA said it owes royalties provided that the products were manufactured using DNA synthesized by City of Hope and that DNA licensees practice valid claims of patents under the 1976 deal. City of Hope, however, said it should receive a royalty whenever DNA licenses patents from the deal. ...