Roche Diagnostics Corporation v. Medical automation systems, Inc

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ARGUED MAY 9, 2011

Before EASTERBROOK, Chief Judge, and WOOD and WILLIAMS, Circuit Judges.

Roche Diagnostics makes glucose monitors and other diabetes-related products that incorporate software written by Medical Automation Systems (MAS). Roche’s contract with MAS entitles it to use the software for two years after the contract’s initial term (2006 through 2010) and any extension. It also gives Roche a right of first refusal should MAS agree to sell its stock or assets to one of Roche’s competitors “during the term of this Agreement.” MAS notified Roche that it would not extend the contract after the original expiration date. Roche learned that investors in MAS were negotiating to sell their stock to Alere, Inc., which Roche considers to be a competitor. It told MAS in December 2010 that it would match Alere’s offer, but MAS replied that, because the transaction would not close until 2011, Roche’s right of first refusal did not apply.

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