Court Revokes Two Advanced Cell Diagnostics Patents, Dismisses Infringement Claims Against Molecular Instruments and Orders Advanced Cell Diagnostics to Make Payment of £1.35 Million to Molecular Instruments

Rhea-AI Summary

Molecular Instruments announced a significant legal victory with the Patents Court of the High Court of England and Wales ruling in their favor against Advanced Cell Diagnostics, a Bio-Techne group company (NASDAQ: TECH). The court revoked two European patents (UK) held by Advanced Cell Diagnostics and dismissed their infringement claims against Molecular Instruments regarding the HCR™ RNA-ISH technology. This action resulted in Advanced Cell Diagnostics being ordered to pay £1.35 million (approximately $1.72 million) to Molecular Instruments. The judgment by Mr. Justice Meade, delivered on April 23, 2024, concluded that the patents were invalid due to obviousness based on overwhelming primary evidence. Dr. Harry Choi, CEO of Molecular Instruments, expressed satisfaction with the outcome, emphasizing their commitment to supporting UK researchers with advanced molecular tools.

Positive

• Court ruling in favor of Molecular Instruments.
• Revocation of two patents held by Advanced Cell Diagnostics.
• Dismissal of infringement claims against Molecular Instruments.
• Judgment based on overwhelming primary evidence.
• Advanced Cell Diagnostics ordered to pay £1.35 million (approximately $1.72 million) to Molecular Instruments.
• Positive impact on Molecular Instruments' reputation in supporting research.

Negative

• Financial obligation for Advanced Cell Diagnostics to pay £1.35 million (approximately $1.72 million).
• Revocation of two patents potentially affecting Advanced Cell Diagnostics' intellectual property portfolio.
• Dismissal of infringement claims could impact Advanced Cell Diagnostics' legal strategy.

Legal Expert

The court's decision to revoke two patents and dismiss the infringement claims against Molecular Instruments is a significant outcome. Patent revocations on the grounds of obviousness can set a precedent and might deter companies from pursuing aggressive legal tactics if their patent claims are weak. The £1.35 million payment ordered to Advanced Cell Diagnostics could impact their financials, especially if they face more legal troubles. Investors should watch how this legal loss influences their business operations and potential liabilities. For Molecular Instruments, the decision is a boost, validating their technology and possibly improving their market standing.

Financial Analyst

From a financial perspective, the £1.35 million payment equates to $1.72 million, which is a non-trivial hit to Advanced Cell Diagnostics, a subsidiary of Bio-Techne (NASDAQ: TECH). The monetary fine could impact their short-term cash flow, but the broader concern is the potential loss of future revenue from the revoked patents. For Molecular Instruments, avoiding a financial penalty and securing validation of their technology could drive investor confidence and potentially increase their market valuation. Investors should keep an eye on Bio-Techne's subsequent financial reports for any signs of reduced R&D expenditure or restructuring to offset the legal costs.

LOS ANGELES--(BUSINESS WIRE)-- Molecular Instruments, Inc. announced that the Patents Court of the High Court of England and Wales has ordered: (1) that two patents owned by Advanced Cell Diagnostics, Inc. (a Bio-Techne group company; NASDAQ: TECH) both be revoked; (2) that Advanced Cell Diagnostics’ infringement claims against Molecular Instruments are dismissed; and (3) that Advanced Cell Diagnostics make a costs payment of £1.35 million (approximately $1.72 million at the current exchange rate) to Molecular Instruments.

In a 2022 lawsuit filed at the High Court of England and Wales (proceedings no. HP-2022-000026), Advanced Cell Diagnostics alleged that Molecular Instruments’ HCR™ RNA-ISH technology infringed European Patents (UK) 2,500,439 and 1,910,572. Mr. Justice Meade handed down a judgment on April 23, 2024 finding that both patents are invalid on grounds of obviousness based on “overwhelming” primary evidence (https://caselaw.nationalarchives.gov.uk/ewhc/pat/2024/898).

“We are pleased that the UK matter is now concluded,” said Dr. Harry Choi, CEO of Molecular Instruments. “We fought this lawsuit as a matter of principle so that the UK researchers whose projects depend on the unmatched capabilities of HCR™ RNA-ISH could continue their research. Our goal is to empower biologists, bioengineers, drug developers, and diagnostics developers by providing them with next-generation molecular tools that enable research breakthroughs.”

About the HCR™ imaging platform

HCR™ RNA in situ hybridization (RNA-ISH) leverages dynamic nanotechnology to enable small amplification components to first penetrate a biological sample without interacting and then autonomously grow bright amplification polymers at the site of RNA targets within the sample. This unique combination of properties enables automated chromogenic and fluorescent HCR™ RNA-ISH workflows to be entirely protease-free, preserving sample morphology and protein target integrity for native compatibility with existing immunohistochemistry (IHC)/immunofluorescence (IF) assays. Likewise, manual fluorescent HCR™ RNA-ISH assays offer unmatched performance, versatility, and robustness in samples of all varieties including whole-mount vertebrate embryos, multi-species environmental samples, thick brain slices, and ultrathick samples up to 1 cm.

About Molecular Instruments

Molecular Instruments® (www.molecularinstruments.com) develops and synthesizes molecular kits powered by the breakthrough HCR™ imaging platform for applications in academic research, drug development, synthetic biology, and clinical pathology and diagnostics.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240521591985/en/

media@molecularinstruments.com

Joyce Yoo

Source: Molecular Instruments, Inc.

FAQ

What was the result of the legal case between Molecular Instruments and Advanced Cell Diagnostics?

The court revoked two patents held by Advanced Cell Diagnostics and dismissed the infringement claims against Molecular Instruments.

How much does Advanced Cell Diagnostics need to pay Molecular Instruments?

Advanced Cell Diagnostics was ordered to pay £1.35 million (approximately $1.72 million) to Molecular Instruments.

When was the judgment handed down by the High Court of England and Wales?

The judgment was handed down on April 23, 2024.

What technology was at the center of the patent infringement claims?

The HCR™ RNA-ISH technology developed by Molecular Instruments was at the center of the patent infringement claims.

Which company holds the NASDAQ ticker symbol 'TECH'?

Advanced Cell Diagnostics is part of the Bio-Techne group, which holds the NASDAQ ticker symbol 'TECH'.