California Supreme Court Hears Key Patent Case

On February 5, 2008, the California Supreme Court heard oral arguments in the patent contract case City of Hope National Medical Center v Genentech Inc (S129463). The case involves an appeal of a $500 million damage award against Genentech, for breach of a fiduciary relationship arising out of a 32-year old patent agreement. The central issue in the appeal is whether the confidential information in patent agreements changes the agreements into fiduciary relationships. During the televised hearings Justice Carol Corrigan commented that she had "trouble believing" that a fiduciary relationship exists solely because one party has more control. She further noted that this power imbalance is seemingly common place in royalty situations. Conversely, Justice Joyce Kennard noted during the hearing that the factors for a fiduciary relationship seemed, "at first glance," to exist in the patent agreement between City of Hope and Genentech. At least 36 amici curiae briefs were filed in the appeal, with some of the biggest names in technology filing briefs in support of Genentech; including Google, Microsoft, Intel, eBay, Biogen, and the Biotechnology Industry Organization. The Motion Picture Association of America, Inc, and the Chamber of Commerce of the United States of America also filed briefs in support of Genentech. City of Hope was supported by briefs filed by the Inventors Association, the Writers Guild of America, the Directors Guild of America, the Screen Actors Guild of America, and the Academy of Applied Science. For a summary of the case, see: http://tinyurl.com/2ms9fr For commentary, see: http://tinyurl.com/39az3s Summary by: Michael Migus