Originally published in V&E IP Insights E-communication, August 1, 2011

In a split decision issued on July 29, 2011, the U.S. Federal Circuit reaffirmed that isolated DNA molecules are patent-eligible subject matter because such isolated molecules do not exist in nature. Assoc. for Molecular Pathology v. Myriad Genetics, No. 2010-1406 (Fed. Cir. 2011). The claims at issue relate to the isolated genes BRCA1 and BRCA2, which are associated with a predisposition for breast and ovarian cancers. According to the majority opinion, authored by Judge Lourie, isolated DNA molecules are distinct from purified DNA because the chemical manipulation process involved in isolating the genes gives them markedly different characteristics from native DNA. Rejecting the plaintiffs' argument that the isolated DNA retains the same characteristics as native DNA because both types of DNA provide the same informational content, the majority explained that materials having a chemical nature are "best described in patents by their structures rather than their functions." The isolation of DNA molecules involves the creation of a new chemical entity rather than just a physical separation because they must be chemically cleaved from their chemical combination with other genetic materials, thus fundamentally altering the chemical structure of the molecule.

Addressing Myriad's method claims relating to: (1) comparing and analyzing sequences and (2) screening potential cancer therapeutics, the court distinguished between methods that are patent-ineligible for being purely "abstract mental processes" from those that are patent-eligible because they involve transformative steps. Applying the machine-or-transformation test, the court held that the claims directed to "comparing" or "analyzing" DNA sequences lack any transformative step and consist only of mental processes. In contrast, the claim directed to screening potential cancer therapeutics via changes in cell growth rates is patent-eligible because it requires the transformative steps of growing cells and determining growth rates in the presence of therapeutics.

What This Means for You

With respect to composition claims covering isolated DNA molecules, the Federal Circuit reaffirmed long-standing precedent that isolated genes are patent-eligible subject matter and explained that any change to this norm should come from Congress, not the judiciary. The decision's impact on method claims is more complicated. While the court explained that "isolating genes to provide useful diagnostic tools and medicines is surely what the patent laws are intended to encourage and protect," it carefully circumscribed the class of method claims that will pass muster. Such claims must recite a distinct physical step — for example growing, extracting, sequencing, or some other physical transformation. Finally, given the split decision in this case, further review by the Federal Circuit and/or Supreme Court is likely.

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