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B 1 Comm: Digest Noes Service
The first patent on DNA gene-splicing has
been awarded to Stanford University, and could
have widespread effects on commercial use of
gene-splicing techniques.
The patent is on the splicing methods of Di
Stanley Cohen of Stanford and Professo
Herbert Boyer of the University of California
San Francisco.
The new patent appears to be very broad, an
covers the new technology of breaking down th,
barriers between species by altering the genes o
bacteria.
More than a dozen new companies hay(
sprung up recently to commercially exploit th,
new gene-splicing discoveries.
Stanford's patent, however, may tin a out is
be broad enough in the basics of gene-splicint
that they may be able to license any use of their
vital techniques.
This will give. Stanford considerable influence
over the use of gene altering, and possibly hun
dreds of millions of dollars in royalties from
commercial development of the new field.
Royalties will probably be considered on a
sliding scale of 1 / 2 % to 5% of the sales of those
firms they "license," according to Stanford of
ficials.
Stanford will also require licensed companies
to adhere to the safety guidelines of the Nationa,
Institute of Health, which involves considerable
red-tape for the company.
Stanford had been working on its patent ap
plication for six years with the government, anc
finally received it in December.
Altering genes can give an organism new
abilities, and can eventually make it possible to
alter or handpick the traits of larger organisms
such as animals and humans.
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Stanford may dominate
gene:splicing field
CULTURAL FILM SERIES
According to attorneys for drug companies
already involved in the new gene-splicing field
when Stanford got its patent, the new patent in
volves techniques nearly each of their firms must
use in their work.
A loop-hole has been discovered in the pa
tent, however. Because the two researchers
published their findings before the patent ap
plication was filed, the patent provides protec
tion only in the United States, not overseas.
Large, multi-national companies are therefore
in the position to move their plants out of the
US to avoid the Stanford patent and re
quirements placed on licensed companies. If
Stanford becomes too difficult to deal with,
companies are expected to move overseas.
Products manufactured overseas could be
shipped back to the US for sale, circumventing
Stanford's patent.
Stanford is working on this problem by urging
US patent protection against the products of
their research within this country, not just the
manufacturing methods that their patent already
covers.
Another problem for Stanford is that their
patent covers basic research that was done
several years ago, and their invention-of these
methods is many steps away from the products
and commercial uses it seeks to license.
Other methods might be found to achieve the
same ends. Other companies are also filing pa
tent applications for gene-splicing methods,
which could lead to conflicting claims and
scores of lawsuits "over a new and potentially
gigantic new commercial pursuit.
Commenting on possible lawsuits against the
school, Stanford patent attorney says "Once the
large corporations sign up, the small ones usual
ly do.... Since most corporations worry about
PR, they don't like to sue a university."
Thursday, February 19, 1981
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