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Miles, Inc. v. Scripps Clinic and Research Foundation

810 F. Supp. 1091 (1993)

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Miles, Inc. v. Scripps Clinic and Research Foundation

United States District Court for the Southern District of California
810 F. Supp. 1091 (1993)

Facts

A pharmaceutical company, Miles, Inc. (plaintiff), and Scripps Clinic and Research Foundation (Scripps) (defendant) jointly owned Scripps-Miles, Inc., a corporation formed to sell immunochemical materials. Dr. Theodore Zimmerman (defendant) was retained by Scripps-Miles as a consultant in 1980. Zimmerman provided the Scripps-Miles monoclonal laboratory with an antigen that led to the production of a cell line, a population of identical cells derived from a single cell. Zimmerman used the cell line to develop a process for purifying Factor VIII:C, which facilitates blood clotting in hemophiliacs. Zimmerman patented the process and assigned his patent rights to Scripps, which licensed these rights to Armour (defendant) and Revlon (defendant). In 1982, Scripps-Miles dissolved, and Miles received ownership of the monoclonal laboratory. Zimmerman continued to use the cell line after the dissolution. Miles sued, alleging that Scripps had conspired with Zimmerman to transfer the right to commercialize the cell line to Scripps. Miles further contended that the transfer of the cell line to Armour and Revlon had deprived Miles of its ownership interest in the right to commercialize the cell line.

Rule of Law

Issue

Holding and Reasoning (Rhoades, J.)

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