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Contact: Al Rickard, 703-402-9713 or arickard@associationvision.com

Supreme Court Decision Will Alter Structure of Future Deals, Licensing Executives Society Says

LES Amicus Brief in MedImmune v. Genentech

January 10, 2007 (Alexandria, VA) - Shock waves are reverberating through the intellectual property licensing profession today following the January 9, 2007 decision by the U.S. Supreme Court to allow biotech company MedImmune to challenge a patent owned by Genentech, a competitor, even though MedImmune continues to pay royalties to Genentech.

"This decision will alter the structure of future deals," said Allen Baum, President of the Licensing Executives Society, USA & Canada (LES). "It changes the rules of engagement."

The patent at issue is alleged by Genentech to cover MedImmune's Synagis, a product that has accounted for more than 80 percent of MedImmune revenue since 1999 - more than $1 billion in sales last year alone.

The Supreme Court decision allows MedImmune to challenge the Genentech patent and avoid any risk that it could be on the hook for treble damages or subject to an injunction. The decision reverses prior rulings holding that a patent licensee had to stop making royalty payments before a court would take the case. MedImmune has been paying the royalties "under protest."

"Under the right circumstances, this decision gives licensees the ability to take a license under a patent and later challenge coverage, validity, and enforceability with impunity," Baum explained. "I think companies with big continuing royalty obligations will look at this decision closely and think twice about whether they should keep paying without a challenge." LES filed a neutral "friend of the court" brief asking for clarity on various issues presented by the case.

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The Licensing Executives Society (U.S.A. and Canada), Inc. (LES) is a professional society comprised of over 6,000 members engaged in the transfer, use, development, manufacture and marketing of intellectual property. The LES membership includes a wide range of professionals, including business executives, lawyers, licensing consultants, engineers, academicians, scientists and government officials. Many large corporations, professional firms, and universities are represented within the Society's membership. LES (U.S.A. and Canada), Inc. is a member society of the Licensing Executives Society International, which has a worldwide membership of over 13,000 members in more than 30 national societies, representing over 90 countries. LES serves as an independent, professional organization that facilitates global intellectual property commerce through education, networking, standards development and certification. For more information on LES, visit www.usa-canada.les.org/aboutus