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Applied Biosystems Sues Roche for Breach of Contract

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Life Technologies' Applied Biosystems business has filed a lawsuit against Roche alleging breach of contract related to their PCR asset purchase agreement inked in July 1991.

The suit was filed last week in the US District Court for the Northern District of California. In the suit, Applied Biosystems alleges that Roche owes it reimbursement for fees associated with a settlement agreement reached in 2008 with Molecular Diagnostic Laboratories. That settlement was the result of a class action suit filed by MDL against Applied Biosystems' predecessor firm Perkin-Elmer and focused on US patent No. 4,889,818, which was sold to Roche in the 1991 agreement.

Applied Biosystems said that it has incurred more than $1 million in attorneys' fees and expenses as a result of the MDL action, and that according to the 1991 agreement, Roche is obligated to indemnify losses associated with the patented technology. Roche has not responded to Applied Biosystems' demand a couple of months ago for reimbursement, which has led to the suit filed last week.

Applied Biosystems has asked the court to award it damages in the amount of the fees, prejudgment interest, expenses incurred in obtaining indemnity under the agreement between the firms, and costs of the suit.

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