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EU High Court Says Law Allows Royalties For Invalid Patents

Law360, New York (July 7, 2016, 6:50 PM EDT) -- The European Union’s highest court has endorsed the legality of a patent license agreement underlying Sanofi-Aventis’ €108 million ($119 million) arbitration award against Genentech, ruling Thursday that patent licensees must pay the agreed-upon royalty, even if the patent is revoked or not infringed.

The European Court of Justice advised a French court handling a dispute between Sanofi-Aventis Deutschland GmbH and Genentech Inc. that the bloc’s competition laws do not preclude payment of royalties on a patent licensing agreement after the invalidation of the patent, as long as the licensee was free to terminate the contract.

Similarly, the law doesn’t prohibit a...

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