Moderna pressed by US judges on billion-dollar COVID patent defense
ABUS•A US appeals court questioned Moderna's defense against patent claims over its COVID-19 vaccines. Moderna has paid Arbutus Biopharma and Genevant Sciences $950 million under a settlement and must pay another $1.3 billion if the court rejects its defense.
1. Appeal over patent defense
A three-judge panel of the US Court of Appeals for the Federal Circuit questioned Moderna, Arbutus Biopharma and Genevant Sciences over whether to overturn a ruling that Moderna was not immune from patent infringement claims under a law covering products made for the government. Arbutus and Genevant sued Moderna in 2022 over its Spikevax vaccine.
2. Settlement payments at stake
Moderna paid the companies $950 million in July under a March settlement and must pay an additional $1.3 billion if the Federal Circuit rejects its government-supplier defense. Moderna argues the United States should have been the defendant because it made vaccines for the federal government's Operation Warp Speed vaccination effort. The government supported Moderna's position.
3. Judges question scope
A Justice Department lawyer said a ruling against Moderna would be “devastating” to government contracting efforts. Judge Richard Taranto questioned whether Moderna's argument could extend the defense to a wide range of government purchases, while Judge Jimmie Reyna asked why the vaccine shots would not be considered made for the government.
