Trolling for patents

12 January 2007 By David Vise

A surge in dubious financial patents has threatened some of Wall Street’s key profit centers. But now banks can fight back and win, thanks to a Supreme Court ruling.

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A Supreme Court ruling this week makes it easier to challenge dubious patents. The court said that firms which have paid license fees still can challenge the underlying validity of patents later, a major change.

The decision was made in a case involving biotech firm Medimmune, which challenged a patent it had licensed from Genentech. Experts say the ruling tilts the balance of power away from holders of shaky patents to licensees by enabling challenges.

Holders of patents, including major pharmaceuticals, GE and others, sided with Genentech. The Bush administration and generic drug makers backed Medimmune, arguing that dubious patents stifle innovation.

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