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Decode Settles IP-Theft Suit Against CHOP, Former Staffers

NEW YORK (GenomeWeb News) — Decode Genetics has settled its lawsuit against the Children’s Hospital of Philadelphia and several former employees for allegedly stealing trade secrets and breaking non-compete and non-solicitation provisions, the company said yesterday.
Under the terms of the settlement, the CHOP defendants have agreed not to “use or disclose” any of the “confidential” information that was the subject of the suit, Decode said in a US Securities and Exchange Commission filing.
Additionally, Decode will receive an undisclosed payment “to give the releases contemplated by the settlement.”
As GenomeWeb Daily News previously reported, Decode last fall sued five former employees for allegedly stealing some of Decode’s intellectual property and sharing that information with CHOP’s Center for Applied Genomics while they were still Decode employees.
The Center for Applied Genomics, which the hospital began operating last summer, focuses on searching for genes linked to childhood diseases such as asthma, obesity, and diabetes.
CHOP said at the time that the suit was “without merit,” and hospital President and CEO Steve Altschuler said, “It would be a blow to the enormous promise of [the hospital's] research if a for-profit company is permitted to interfere with the potential advancement of healthcare for children."

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