Washington University of St. Louis is suing the Wisconsin Alumni Research Foundation, University of Wisconsin-Madison’s research wing, citing “shabby treatment” by WARF, according to a St. Louis Dispatch article.
Washington University is seeking $38 million in royalties that WARF would receive after the sale of kidney disease drug, from AbbVie Inc.
The two universities agreed to work together in the early 1990s for therapies for conditions related to kidney disease and jointly applied for a patent in 1995 which stated that WARF would take the lead on getting the patent in return for receiving more money in licensing.
The patent was licensed to Abbott Laboratories in 1998 for use with a drug called Zemplar, eventually spinning off to AbbVie Inc. in 2013.
The patent Washington University is suing for is one of three dozen patents tied to Zemplar. Washington University claimed that WARF breached the agreement by undervaluing the patent when it was first licensed because WARF’s valuation was misleading. According to the St. Louis Dispatch, Washington University was unable to make their own valuation, so they claimed that WARF intentionally undervalued the original price.
WARF has been involved a few recent legal battles over licensing. Last summer, Apple was forced to pay over $500 million after a judge found that the tech company infringed on WARF patents used in iPhones.
Both WARF and UW-Madison declined to comment because the litigation is ongoing.
