{"ID":55404,"name":"MedImmune, Inc. v. Genentech, Inc.","href":"https:\/\/api.oyez.org\/cases\/2006\/05-608","view_count":0,"docket_number":"05-608","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"MedImmune, Inc.","second_party":"Genentech, Inc., et al.","timeline":[{"event":"Granted","dates":[1140501600],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/39725"},{"event":"Argued","dates":[1159938000],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/39726"},{"event":"Decided","dates":[1168322400],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/39727"}],"lower_court":{"ID":17,"name":"United States Court of Appeals for the Federal Circuit","href":"https:\/\/api.oyez.org\/taxonomy\/term\/17"},"facts_of_the_case":"\u003Cp\u003EGenentech held the patent for \u0022Cabilly I\u0022, a process for using cell cultures to manufacture human antibodies. MedImmune had a licensing agreement with Genentech under which MedImmune paid royalties to Genentech in return for the use of the patent. Later, Genentech also obtained the patent to \u0022Cabilly II,\u0022 a continuation of the Cabilly I process. Under the licensing agreement, MedImmune became a licensee for Cabilly II as well. Genentech informed MedImmune that it would have to pay royalties on one of its most lucrative products, Synagis, which uses the Cabilly II process. MedImmune sued Genentech, claiming that the patent was invalid and unenforceable. However, MedImmune kept paying the royalties.\u003C\/p\u003E\n\u003Cp\u003EA federal District Court dismissed the suit because it did not present a controversy. Article III of the Constitution limits the jurisdiction of federal courts to \u0022cases or controversies.\u0022 This is implemented in the Declaratory Judgment Act, which requires that a suit involve an \u0022actual controversy.\u0022 Genentech argued that since MedImmune was still paying royalties on the patent, there was no controversy. MedImmune countered that though it was indeed still paying royalties on the patent it claimed was invalid, it was paying \u0022under protest.\u0022 It would be unreasonable, MedImmune argued, for the company to be required to break its contractual obligations by stopping royalty payments before suing. This might jeopardize MedImmune\u0027s legal rights to one of its best-selling products.\u003C\/p\u003E\n\u003Cp\u003EThe U.S. Court of Appeals for the Federal Circuit ruled for Genentech and upheld the District Court, holding that the suit presented no actual controversy.\u003C\/p\u003E\n","question":"\u003Cp\u003EDoes the \u0022actual controversy\u0022 requirement of the Declaratory Judgment Act require that a patent licensee break its licensing agreement by refusing to pay royalties before suing to declare a patent invalid and unenforceable?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003ENo. In an 8-1 decision authored by Justice Antonin Scalia, the Court reversed the Federal Circuit and ruled for MedImmune. The Court held that MedImmune was not required to break its contract before suing, because \u0022The rule that a plaintiff must [...] risk treble damages and the loss of 80 percent of its business[] before seeking a declaration of its actively contested legal rights finds no support in Article III.\u0022 The Declaratory Judgment Act only requires that disputes be non-hypothetical and non-abstract. The mere fact that royalties were still being paid, the Court ruled, was not sufficient to remove the courts\u0027 jurisdiction under Article III. In a lone dissent, Justice Thomas argued that the Court\u0027s expansive approach toward Article III jurisdiction would improperly allow parties to bring premature, theoretical suits.\u003C\/p\u003E\n","advocates":[{"advocate":{"ID":31320,"name":"John G. 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