Jury Rules in Favor of Tercica, Inc. in Patent Litigation
PALO ALTO, CA (December 7, 2006) — In a closely watched biotechnology case relating to recombinantly produced hormones that enable children of short stature to grow, a California jury ruled in favor of McDermott Will & Emery client, Tercica, Inc., and Genentech. The jury found that defendants Insmed Incorporated and Insmed Therapeutic Proteins, Inc. infringed all claims of all of Genentech's patents in question. And further found that one of the three patents was willfully infringed, resulting in a significant upfront payment and royalties that were awarded to Tercica and Genentech.
"This is a monumental and complete verdict that establishes without question the powerful, fundamental patent rights of Genentech and Tercica," commented Terrence McMahon.
In April 2002, Tercica exclusively licensed these patents from Genentech for use in its manufacture and sale of, among other things, Increlex™. The jury awarded Tercica and Genentech an upfront payment of $7.5 million and 15 percent royalties for damages pertaining to IPLEX™ past sales of up to $100 million, and 20 percent royalties for IPLEX™ past sales greater than $100 million.
McDermott's representation of Tercica was led by Terrence McMahon, head of the Firm's West Coast IP practice, and William Gaede, head of the Firm's life sciences practice. The defendant, Insmed, was represented by Howrey and Foley & Lardner.
McDermott's Intellectual Property, Media & Technology Department includes more than 215 lawyers and patent agents working in all of our offices throughout the world. We are renowned for our trial and appellate experience, and are ranked as one of the strongest IP litigation firms for both plaintiffs and defendants.
