Board of Trustees of the Leland Stanford Junion University v. Roche Molecular Systems, Inc.

The Board of Trustees of the Leland Stanford Junior University (“Stanford”) appeals a final judgment that the asserted claims of U.S. Patents No. 5,968,730 (“’730 patent”), No. 6,503,705 (“’705 patent”), and No. 7,129,041 (“’041 patent”) are invalid for obviousness. Bd. of Trs. v. Roche Molecular Sys., Inc., 563 F. Supp. 2d 1016 (N.D. Cal. 2008) (“Invalidity Opinion”). Roche Molecular Systems, Inc., Roche Diagnostics Corporation, and Roche Diagnostics Operations, Inc. (collectively, “Roche”) cross-appeal that part of the district court’s judgment relating to Roche’s ownership, license, and shop rights to the patents-in-suit. Bd. of Trs. v. Roche Molecular Sys., Inc., 487 F. Supp. 2d 1099 (N.D. Cal. 2007) (“Contract Opinion”).

Because the district court correctly found that Roche’s counterclaim for a judgment on its ownership claim was subject to California statutes of limitation, we affirm that part of the district court’s ruling. However, because the district court incorrectly declined to consider Roche’s affirmative defense based on ownership, and because we conclude as a matter of law that Roche possesses an ownership interest in the patents-in-suit that deprives Stanford of standing, we vacate the district court’s judgment of invalidity and remand with instructions to dismiss Stanford’s action.