Intellectual Property Law

New Matter VOLUME 50, EDITION 3, FALL 2025

Contract Ambiguity Leads to Mistrial In $122m Biotech Royalty Dispute: Lessons from Genentech v. Biogen

SOODY TRONSON
STLG Law Firm

THE MISTRIAL AND ITS SIGNIFICANCE

A CALIFORNIA FEDERAL JURY’S INABILITY TO interpret standard, but ambiguous, patent licensing provisions resulted in a mistrial that sent shockwaves through the biotechnology licensing community. On July 3, 2025, U.S. District Judge Yvonne Gonzalez Rogers declared a mistrial in Genentech Inc. v. Biogen MA Inc., after jurors deadlocked over whether Biogen owed $122 million in royalties for antibody drugs manufactured before patent expiration but sold afterward.1

The case represents far more than a simple contract dispute between pharmaceutical titans. It exposes a critical ambiguity lurking in countless biopharmaceutical license agreements: precisely when does the obligation to pay royalties accrue? The answer to this question determines whether biotechnology companies owe millions in "tail royalties" on inventory manufactured under patent protection but commercialized after expiration.

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