The U.S. Supreme Court, in a ruling that limits the patent rights of research universities, threw out Stanford University's suit against a Roche Holding AG (ROG) unit over methods for testing the effectiveness of AIDS treatments.

Voting 7-2, the justices upheld a lower court's conclusion that a scientist working at Stanford in Palo Alto, California, transferred his rights to the discoveries to a company whose line of business Roche later bought. Under the court's reasoning, the transfer made the company a co-owner of three disputed patents.

Read the complete Bloomberg story, “Roche Wins as High Court Limits University Patent Rights.”