A patent lawsuit against Life Technologies, a biotech company acquired by Thermo Fisher in 2013, could cause expensive repercussions for medical device makers relying on global supply chains, reports Boston Business Journal.
In the lawsuit, Promega Corp. claims a genetic testing kit produced by Life Technologies infringes on several of its patents. While Life Technologies produces one of the kit's main components in the U.S. — an enzyme called Taq polymerase — the company sends the material to the U.K., where the product is then fully developed, according to the report.
Under current law, companies are only liable for patent infringement when they supply a substantial portion of the product's final component. The case boils down to whether companies who make a just a few components of a patented product in the U.S. before finishing assembly outside of the country are still held liable for infringement in a U.S. court.
If the Supreme Court rules against Life Technologies, various manufacturers, including devicemakers, could be exposed to expensive patent infringement cases regarding products with even the smallest connection to the U.S., according to the report.
While the high court will hear oral arguments regarding the case Tuesday, a decision is not expected until next year.
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