Private Banks Win PharmaStem Lawsuit

The four private cord blood banks who fought PharmaStem have won in Delaware District Court. The four are CBR, CorCell, Cryo-Cell and Viacell. On 14 Sept., Judge Sleet ruled they had not infringed on patent '553 and granted a new trial to determine damages for infringement of the '681 patent. Now, the Judge has ruled that there is no infringement of '681 either. At present both patents are still valid. However, the Patent and Trademark Office is re-examining patents '553 and '681. So long as the patents are valid, those banks who signed licensing agreements with PharmaStem must pay royalties according to the terms of their contracts (patent '681 expires in 2008 and patent '553 expires in 2010). As of 30Sept2004, PharmaStem has received $1.5 million in royalites from banks which signed licensing agreements.

Follow-up: 1 Mar 2005