Landmark Gene Patenting Case Heading Back to the Supreme Court

The protracted battle over the patenting of the BRCA breast cancer mutations witnessed another volley in late November the Supreme Court granted certiorari (in part) to take up the case against Myriad Genetics, the Utah-based biotechnology firm who holds the patent. The case stands to have a major impact on the emerging field of personalized medicine, where physicians armed with complete genetic data on patients can tailor treatment plans to match an individual’s specific physiology. The patent system has long upheld the idea that “laws of nature” cannot be patented, however our growing technical and scientific abilities have increasingly blurred the critical distinction between patentable innovation and unpatentable discovery. Laying Claim to a Genetic Variant

At its heart, this case hinges on the patent claims of Myriad Genetics, which include a claim to the BRCA1 and BRCA2 mutations, two genetic variants which are known to significantly increase a woman’s probability of developing breast and ovarian cancer. The application of this patent by Myriad Genetics has created a monopoly on screening for this variant, with the patent-holder’s lab being the only one in the nation performing all commercial tests for the BRCA mutations. Though this claim has been challenged, the US Court of Appeals for the Federal Circuit affirmed the validity of the patent in July of 2011, holding that the complimentary DNA developed to interact with this variation was an invention, and sufficiently distinct from the underlying natural processes to be patentable. Ass'n for Molecular Pathology v. U.S. Patent & Trademark Office, 653 F.3d 1329 (Fed. Cir. 2011). Following the denial of two requests for a rehearing the case seemed settled until  the  of 2012.

A Ray of Hope for Opponents of Gene Patenting

The Supreme Court’s recent decision in Mayo Collaborative Services v. Prometheus Laboratories, Inc. appeared to be the signal that detractors of gene patenting were looking for. That case, decided in March of 2012, struck down a patent on a technique for calibrating dosage of an autoimmune medication, holding that the patent did not diverge sufficiently from the underlying law of nature, and as such was not patentable. On it’s face, this case bears a striking similarity to the case against Myriad Genetics. In both instances, observations of underlying facts of biology serve as the lynch pin for the claimed patient.

With this in mind, the ACLU, who is trying the case on behalf of a host of plaintiffs, filed a petition of certiorari, asking the court to take up the Myriad Genetics case in light of their findings in Mayo Collaborative Services. The court apparently agreed, as they vacated the Federal Circuit Court of Appeals decision and asked that court to revisit the case in light of the Mayo decision. Ass'n for Molecular Pathology v. Myriad Genetics, Inc., 132 S. Ct. 1794, 182 L. Ed. 2d 613 (2012).  Given the court’s decision to remand the case, it seemed certain that Myriad’s patent would be invalidated. Nevertheless, the Court of Appeals essentially reaffirmed their previous decision, claiming the case was distinguishable from the Mayo Collaborative case, while both tests involved the observation of natural reactions, the Myriad technique uses man-made cells in the testing process, rather than observing purely natural metabolism. This ruling fundamentally upholds the right to patent genes, and reinforces the exclusive right of Myriad to test for the BRCA variation.

Following the Federal Circuit Court of Appeals Court’s ruling, the ACLU again petitioned the Supreme Court for certiorari. Representatives of the ACLU stated that they believe the appellate court failed to “fully consider or correctly apply” the Mayo Collaborative case. The court granted certiorari in part to answer the principle question of the appeal: Are human genes patentable?  Ass'n for Molecular Pathology v. Myriad Genetics, Inc, 133 S. Ct. 694 (U.S. 2012).

Assessing the Potential Impact of Myriad Genetics

The potential impact of the Myriad Genetics case is difficult to understate. Genes are the fundamental blueprints for human physiology, and we are only beginning to unravel the vast complexity of their application. By allowing private organizations to patent genes or gene variants, we run a serious risk of inhibiting discovery in this critical field by instilling a fear in scientist of facing patent infringement litigation as a result of their work.

On a more practical level, the diagnostic monopoly being enforced by the court allows Myriad Genetics to charge over $3,000 for the test. In contrast, many predict that scientists will be able to sequence an individual’s entire genome for a mere $1,000 in just a few years. The ability to access this incredibly valuable diagnostic information could be hindered if gene patents continue to be enforced. For example, if a patient’s whole genome is sequenced, it may be the case that her physician can’t share the results of the screening in terms of any BRCA outcomes without paying Myriad Genetics for the right to do so. Multiply this result by the thousands of genes that have been patented to this point, and the development of inexpensive full-genome screening could be undermined entirely, depriving the medical field of a critical diagnostic tool.

To date, the damage incurred by enforcing Myriad’s BRCA patent has been relatively minimal. Nevertheless, as the industry continues to grow and more and more genes are patented, this question is likely to arise more and more, with potentially greater consequences than we have seen in this case. Now that the Supreme Court has chosen to hear the case against Myriad Genetics, we may see the first definitive ruling on the patentability of human genes as early as this summer. We will continue to track this case on the blog through the Supreme Court arguments this spring and the ruling this summer. To track these and other interesting developments in the IP world, subscribe to the blog using the link to the right.

International: Pirates in Britain will not be disconnected from the internet

One of the new strategies of the music industry internationally is to find new policemen to enforce its rights in the digital world.

ISPs are extremely appealing candidates in this regard, since they can disconnect users from the Internet. Using ISPs can prevent repeated infringements and deter new ones. The music industry lobbied aggressively in various countries to enact a law that will force ISPs to disconnect repeated infringers from the Internet. The BRI, which represents the British record industry, has almost succeeded in passing such legislation in Britain, as the British government had seriously intended to compel internet companies to cut off customers who ignore warnings not to download music and video files illegally.

However, an interview with The Times with Mr. David Lammy, the British Intellectual Property Minister, revealed that the Government had ruled out creating a law. He questioned whether such a law can actually be possible.

While the music industry expressed disappointment of the reverse turn, ISPs--who consistently objected the heavy hand of the legislator being involved in their business--expressed satisfaction, saying that it is impossible to attract people to use the Internet and at the same time to scare them away.

Seven million British share files illegally every year, and the damage to the industry is said by the industry to amount to £180million a year.

Blogging the Symposium: Government Role in IP

The third panel featured a lively debate on the proper role for the government in enforcing intellectual property rights. In particular, discussion focused on the PRO-IP act, a controversial bill which had proposed increased damages for infringement and a new government bureaucracy to ensure the protection of copyright.

Sherwin Siy, above left, discussed the recent markup of the bill, which moved out of subcommittee only after the provision to disaggregate damages was struck.

Many of the questions focused on whether it was proper for the government to spend a significant amount of money to protect a private right. Prof. Post pointed out that the nature and protection of property rights changes with technology, noting that at one point flying an airplane over one's land was considered a trespass. The government, he said, should not be in the business of protecting outdated business models. From the audience, Prof. Parchomovsky, the moderator from the first panel, questioned whether the benefits would outweigh the costs of such a proposal.

Charles Sanders (far left) said that less protection for artists would lead to the decline of professional artists in favor of amateurs, countering a comment by Prof. David Post (far right) that people create even in the absence of an ability to make money. There may be more works of art than ever, Sanders said, but they are not of the same quality as professional products. Also pictured are Sherwin Siy and Sigal Mandelker from the DOJ. Ms. Mandelker opposed the creation of a new government office for copyright, noting that the DOJ has already been prosecuting large-scale infringers.

Prof. Christopher Yoo (far left) moderated debate between Mr. Sanders and Prof. Post. Mr. Sanders told Prof. Post that if they sat down and talked, they would probably agree 98% of the time. Prof. Post said if that was true, he would buy him a beer--by the end of the panel, it became clear that no beer would be forthcoming. They did agree, however, that the music industry needed to adopt a new business model in the face of changing technology.

Copyright & the Internet Symposium

March 20, 2008--Yesterday, PIPG hosted notable scholars, practitioners, and policy advocates at its inaugural symposium, entitled “Copyright & the Internet: Solutions for a Digital World.” The discussion focused on the entertainment industry's ability to respond to challenges posed by mass copyright infringement on the Internet, the use of filters, and what role, if any, the government should play in protecting copyrighted works.

In the upcoming days, we will post commentary and pictures from the event. The full schedule was as follows:

Panel 1: “Industry Response to User-Generated Content: Cooperation or Litigation?”
Moderator: Prof. Gideon Parchomovsky
Panelists:
Michael Carroll, Professor of Law, Villanova School of Law
Lance Koonce, Partner, Davis Wright Tremaine
Stanley Pierre-Louis, Vice President and Associate General Counsel, IP and Content Protection, Viacom
Kevin Werbach, Assistant Professor of Legal Studies, Wharton

Featured presentations
Kevin Kuzas, VP and General Counsel, Comcast Interactive Media
"Challenges in Internet Video"
William Patry, Senior Copyright Counsel, Google Inc.
"Internet Metaphors and Why We Need to Lose Them"

Panel 2: “Can Copyright and the First Amendment be Reconciled in the Internet Age? Filtering, Takedown Notices, & the Role of Fair Use”
Moderator: Prof. R. Polk Wagner
Panelists:
Kathleen Carignan, Director, Philadelphia Volunteer Lawyers for the Arts
Gregory Marchwinski, CEO, Red Lambda
Jennifer Pariser, Executive Vice President, Sony/BMG
David Sohn, Senior Policy Counsel and Director, Project on IP and Technology, Center for Democracy & Technology
Robert Terrell, LAW ’86, Associate General Counsel, UPenn

Panel 3: “Government Involvement in Copyright Regulation: Discussing the U.S. Role in Monitoring IP Infringement Online”
Moderator: Prof. Christopher Yoo
Panelists:
Sigal Mandelker, LAW '00, Deputy Asst. Attorney General, DOJ
David Post, Stern Professor of Law, Temple's Beasley School of Law
Charles J. Sanders, Counsel, Songwriter's Guild of America
Sherwin Siy, Staff Attorney and Director, Global Knowledge Initiative, Public Knowledge

PIPG would like to thank Hogan & Hartson for its generous support.