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Feb 7
MedImmune v. Genentech Part III

The following is not meant to be legal advice.

 

In MedImmune v. Genentech, even though Genentech could not sue MedImmune for infringement while the license was in place, there was a sufficient controversy over whether MedImmune had to pay royalties. MedImmune did not first need to breach the license, which would give rise to a Genentech claim for damages or injunctive relief, before seeking declaratory relief about the parties' rights and duties under the license. 

In Altwater v. Freeman, 319 U.S. 359 (1943), the Court allowed patent licensees who had paid royalties "under protest," to seek a declaratory judgment about the patent's validity. Signing a license agreement under protest creates a controversy where payment of a claim is demanded as of right and where payment is made, but where the involuntary nature of the exaction preserves the right to recover the sums paid or to challenge the legality of the claim.

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