In 2005, the Supreme Court decided Merck KGaA v. Integra Lifesciences, substantially expanding the ability of drug companies to use patented compounds in drug research without fear of infringement. The case began in 1996, when Integra sued Merck over research Merck was funding on certain compounds for the prevention of angiogenesis. The research was primarily aimed at developing new drugs for fighting cancer. One of the compounds investigated was the RGD peptide, on which Integra held 5 patents that Merck had not licensed (negotiations were apparently attempted unsuccessfully). The District Court jury found that Merck had indeed infringed Integra’s patents, awarding Integra a $15 million judgment. Merck was displeased and appealed, but the Federal Circuit upheld much of the lower court’s decision, although they ordered the District Court to lower the damage award (it would eventually fall to $6.375 million). Still unsatisfied, Merck appealed again and its persistence paid off; the Supreme Court not only granted certiorari, but also unanimously reversed the lower court. Why did Merck’s luck change so dramatically?
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