- Examines Exact Sciences’ patent infringement lawsuit against Geneoscopy to understand the complex relationship between patent rights and innovation.
- Discusses how litigation-centric culture could deter innovators from risks, potentially stymying medical advancement.
- Considers how public reaction to such legal disputes may affect both corporations and the medical technology industry at large.
Intellectual property law hinges heavily on patents, an undeniable reality proven by their long and pivotal history. Originating from the earliest established patent regulations, like the Venetian Patent Statute of 1474, the focus has always been on encouraging invention through the exclusive right to benefit from it. Viewing it from a financial lens, a patent could be seen as a specific type of call option in which the holder reserves the right—without any obligation—to benefit from an innovation; an approach conducive to capital investment. Especially in sectors like medical technology, significant improvements to quality of life could be a direct result of such innovation.
An interesting case study highlighting this is the ongoing patent discord between Exact Sciences and Geneoscopy. The specifics of the case are illuminating. Post the development of their unique colorectal cancer detection methodology, Exact Sciences essentially obtained an exclusive call option to commercialize their innovation, an option they staunchly continue to shield. The previous year witnessed 68% of biotech companies intensifying their intellectual property lawsuits to secure their medical patents.
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