Cambridge Antibody Technology V Abbott Biotechnology Limited

In one of the year’s most valuable contract claims to come before the UK Patents Court, the CAT v Abbott dispute demonstrates the importance of properly understanding both the extent of existing IP rights and the nature of the protected technology, when drafting commercial agreements in technically complex fields.

Under two collaboration agreements (the "Agreements") Abbott was licensed to use CAT's patented technology in order to develop an antibody to a protein known as TNFa - a protein thought to play a large part in rheumatoid arthritis. The case concerned a dispute over the amount of royalties payable in relation to Abbott's sales of HUMIRA, a blockbuster biologic rheumatoid arthritis drug that utilises the TNFa antibody. CAT brought an action claiming that Abbott was not entitled to offset the royalties owed to CAT under the Agreements against royalties paid by Abbott to third parties for other patented technology.