{"id":42660,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/patent-rights-purchase-agreement-isis-pharmaceuticals-inc-and.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"patent-rights-purchase-agreement-isis-pharmaceuticals-inc-and","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/operations\/patent-rights-purchase-agreement-isis-pharmaceuticals-inc-and.html","title":{"rendered":"Patent Rights Purchase Agreement &#8211; Isis Pharmaceuticals Inc. and Gilead Sciences Inc."},"content":{"rendered":"<pre>                          PATENT RIGHTS PURCHASE AGREEMENT\n\n               This Patent Rights Purchase Agreement (this 'Agreement') is \nmade and entered into as of December 18, 1998 (the 'Effective Date') between \nIsis Pharmaceuticals, Inc. ('Isis'), and Gilead Sciences, Inc. ('Gilead'). \n\n               1.     DEFINITIONS.  \n\n                      1.1     'Cationic Lipid' means those compounds \ndescribed in United States Patent Nos. 5,777,153 and 5,705,693; United States \nPatent Application Serial No. 08\/672,206; and European Patent Application No. \n97931462.2, to the extent such compounds are not Codeblocker Compounds. \n\n                      1.2     'Codeblocker Compound' means an oligonucleotide \nthat binds directly to DNA or RNA within a cell on a selective basis \ndetermined by the nucleotide sequence of the target DNA or RNA and exerts its \nbiological activity predominantly through binding to DNA or RNA to inhibit \nthe transcription or replication of the target DNA or RNA or binding to RNA \nto inhibit the translation, processing, packaging or regulatory activity of \nthe target RNA.  A Codeblocker Compound may also have a mechanism of action \nor biological activity other than one conferred through direct binding to RNA \nor DNA provided that (i) the compound originally was designed to bind a \ntarget DNA or RNA and (ii) the final compound or any compounds used to derive \nthe final compound were not identified using selective purification and \npolymerase amplification in any fashion.  An oligonucleotide, is any oligomer \nor polymer made up [***]  An oligonucleotide includes RNA or DNA fragments, \nand may be composed of naturally occurring or non-naturally occurring bases, \nsugars or intersugar linkages.  An oligonucleotide may have the bases, sugars \nor intersugar linkages partially or completely absent.  Oligonucleotides may \nbe made such that adjacent nucleoside or nucleoside fragments are linked \ntogether by phosphate groups or modified or non-naturally occurring \ninternucleoside linkages to form the internucleoside backbone of the \noligomer, whether or not such linkages retain a phosphorous atom in the \nlinkage.\n\n                      1.3     'Oligonucleotide Delivery System' means any \ncarrier, targeting entity, excipient, formulation, device, prodrug, covalent \nor noncovalent conjugate, encapsulating vesicle, microcapsule, micro- or \nnanosphere, emulsion, or microemulsion, lipid, liposome, virosome, or \nartificial vial envelope which was developed by Gilead on or prior to the \nEffective Date, and which (i) enhances the cellular penetration or \ncirculating half-life of a Codeblocker Compound, (ii) selectively delivers a \nCodeblocker compound to the intended target tissue, cell or subcellular \ncompartment, (iii) provides sustained release of a Codeblocker Compound from \na depot formulation, or (iv) otherwise favorably alters the absorption, \ndistribution, metabolism or excretion of a Codeblocker Compound so as to \nenhance its pharmacological activity of clinical value.  'Oligonucleotide \nDelivery System' includes cationic lipids.\n\n------------------------\n[***]=CONFIDENTIAL TREATMENT REQUESTED\n\n\n                                       1.\n\n\n\n                      1.4     'Patent Rights' means the patents and patent \napplications listed in Exhibit A attached hereto.\n\n               2.     ASSIGNMENTS AND LICENSES.     \n\n                      2.1     Gilead hereby sells and assigns to Isis all of \nGilead's right, title and interest in Patent Rights, subject to the rights of \nGlaxo Wellcome Inc. ('Glaxo') under the Collaborative Research Agreement \nbetween Glaxo and Gilead dated March 25, 1996 (the 'Glaxo Agreement'), \nprovided however, that the assignment of U.S. Patent Number 5,256,775 shall \nbe subject to the condition precedent that Gilead settle the interference \ninvolving this patent on conditions of Gilead's choosing (including conceding \npriority). Gilead hereby grants Isis an exclusive, royalty-free, worldwide, \nassignable license (with the right to grant sublicenses) to U.S. Patent \nNumber 5,256,775 beginning on the Effective Date and continuing until such \ntime that Gilead settles the interference and the assignment to Isis becomes \neffective.\n\n                      2.2     Gilead hereby assigns and delegates to Isis \n(and Isis accepts and agrees to perform) all of Gilead's rights and \nobligations under the License Agreement between Glen Research Corporation \n('Glen Research') and Gilead dated January 1, 1994 and amended on November \n19, 1996.  A copy of the written consent to such assignment and delegation \nsigned by Glen Research is attached hereto as Exhibit B.  In the event that \nIsis, by reason of this Agreement, is required to indemnify Glen Research \nunder Section 8.1 (b) of the Glen Research License Agreement, Gilead will \nindemnify Isis up to a maximum amount equal to one hundred percent (100%) of \ntotal royalties received by Gilead from Glen Research; thereafter, Gilead \nwill not have any indemnity obligations to Isis related to such Agreement.  \nGilead will continue to honor its obligations to Glen Research for activities \npreceding the Effective Date of this Agreement. \n\n                      2.3     Subject to the rights of Glen Research above, \nIsis hereby grants to Gilead an exclusive, perpetual, irrevocable,  \nroyalty-free, worldwide, assignable license (with the right to grant \nsublicenses) to directly or indirectly make, have made, use, import, export \nor sell compounds and other subject matter falling within the scope of Patent \nRights which are [***]\n\n                      2.4     Gilead hereby grants to Isis a nonexclusive, \nperpetual, royalty-free, worldwide, assignable license (with the right to \ngrant sublicenses) to compounds and other subject matter which are within the \nscope of Patent Rights, solely for use as intermediates in the manufacture of \nCodeblocker Compounds or oligomers [***]\n\n                      2.5     Isis hereby grants to Gilead a non-exclusive, \nnon-sublicensable, non-assignable, perpetual, irrevocable, royalty-free, \nworldwide license under Patent Rights to make and use Codeblocker Compounds \nand Oligonucleotide Delivery Systems for internal research purposes, but not \nfor any commercial purpose.\n\n                      2.6     Isis will not have any obligations to Gilead \nrelating to Codeblocker Compounds or this Agreement to the extent arising \nprior to the Effective Date. \n\n------------------------\n[***]=CONFIDENTIAL TREATMENT REQUESTED\n\n\n                                       2.\n\n\n\n                      2.7     Each party hereby agrees to execute such \ndocuments and to take such other actions as shall be necessary or appropriate \nto effectuate the assignments and licenses set forth in this Section 2.\n\n               3.     REPRESENTATIONS AND WARRANTIES BY GILEAD.\n\nGilead makes the following representations and warranties to Isis, each of \nwhich will survive the Effective Date:\n\n                      3.1     To the best of Gilead's knowledge, the Patent \nRights include all of the patents and patent applications owned or controlled \nby Gilead on or prior to the Effective Date that cover Codeblocker Compounds \nand Oligonucleotide Delivery Systems, their manufacture or use. There are no \nother US or unpublished foreign filings owned or controlled by Gilead filed \nprior to the Effective Date which claim Codeblocker Compounds or \nOligonucleotide Delivery Systems other than as set forth in Exhibit A, nor \ndoes Gilead have any present intention to make such filings.  If Gilead \nbecomes aware of any patents or patent applications that (i) are owned or \ncontrolled by Gilead, (ii) claim inventions made prior to the Effective Date, \n(iii) cover Codeblocker Compounds or Oligonucleotide Delivery Systems, and \n(iv) are not included in Exhibit A, Gilead will promptly notify Isis in \nwriting and execute appropriate documents to transfer such patents and patent \napplications to Isis.\n\n                      3.2     Gilead represents and Isis acknowledges that \n(i) the Glaxo Agreement remains in effect and Gilead and Glaxo have ongoing \nrights and obligations thereunder, modified to the extent specifically set \nforth in this Agreement and (ii) this Agreement is not an assignment of \nGilead's rights or obligations under the Glaxo Agreement and that Isis \nassumes no rights or obligations to Glaxo under this Agreement.  Gilead \nrepresents that the Research Term and all rights, obligations and funding \nrelating thereto under the Glaxo Agreement have been terminated.  Gilead will \nnot enter into any future amendments to the Glaxo Agreement which in any way \naffect the rights of Isis hereunder.\n\n                      3.3     The Glaxo Agreement and the license to Glen \nResearch referenced in Section 2.2 above are the only licenses and Gilead is \nnot aware of any other third party rights of any kind affecting the Patent \nRights. Except with respect to U.S. Patent Number 5,256,775, which is subject \nto an interference proceeding, the Patent Rights are not the subject of any \npending interference, cancellation or other protest proceeding not otherwise \nknown to Isis, or otherwise subject to rights or obligations to any third \nparty other than Glaxo and Glen Research.  The complete terms and conditions \nof such rights and obligations relating to Glaxo and Glen Research have been \ndisclosed to Isis.\n\n                      3.4     There are no Collaboration Compounds (as \ndefined in Section 1.7 of the Glaxo Agreement) and none were developed during \nthe Research Term under the Glaxo Agreement.  Gilead does not owe any \nroyalties to Glaxo or any third party under the Glaxo Agreement nor does \nGilead have any known or pending claims against Glaxo arising out of the \nGlaxo Agreement.  To the best of Gilead's knowledge, (i) Glaxo does not owe \nany royalties to Gilead or any third party under the Glaxo Agreement, (ii) \nnor does Glaxo have any known or pending claims against Gilead arising out of \nthe Glaxo Agreement.\n\n\n                                       3.\n\n\n\n               4.     TECHNOLOGY TRANSFER.\n\n                      4.1     Gilead and Isis will cooperate in the filing \nand execution of any and all documents necessary to effectuate the assignment \nto Isis of the Patent Rights, including the filing of assignments or other \ntransfer of title covenants with the U.S. Patent and Trademark Office and \nforeign patent offices as applicable to the Patent Rights.  Within thirty \n(30) days from the Effective Date, Gilead will notify all attorneys handling \nthe prosecution of the Patent Rights to contact the Isis Patent Department to \nprovide an immediate status update on the Patent Rights and to prepare the \ndocuments necessary to transfer the Patent Rights to Isis.  The cost of \nrecording assignments of the Patent Rights will be borne by Isis.  Within \nforty-five (45) days from the Effective Date, Gilead and its counsel will use \ntheir reasonable best efforts to transfer all files and supporting documents \nrelating to the Patent Rights to Isis, including but not limited to, all \ninitial invention disclosure documents, all documents sent to the U.S. Patent \nand Trademark Office regarding inventions and claims, all draft patent \napplications, all filing or prosecution documents submitted to the patent \noffices, and all file wrappers.  Conception notebooks and all other documents \nin the possession or under the control of Gilead or its counsel relating to \nconception and\/or reduction to practice, such as scientist notebooks shall be \nobtained in accord with Gilead's ordinary document retention and made \navailable to Isis upon Isis' reasonable request.  All documents to be \nprovided to Isis hereunder are to be sent by expedited delivery service.\n\n                      4.2     Gilead will make appropriate scientific staff \navailable to Isis for a scientific tutorial on the subject matter of this \nAgreement, such tutorial not to exceed more than [***] from Gilead's staff \nand not to obligate Gilead to disclose any third party confidential \ninformation. \n\n               5.     PATENT MAINTENANCE AND PROSECUTION RESPONSIBILITIES.\n\n                      5.1     On and after the Effective Date, Isis will take \nresponsibility for any action or proceeding involving Patent Rights.  The \ncost of recording the assignment of Patent Rights shall be borne solely by \nIsis.  If Isis elects not to take such responsibility involving Patent \nRight(s) in a particular country then Isis will timely notify Gilead and \nGlaxo 30 days before the time future action is due, and thereafter Gilead or \nGlaxo shall undertake such responsibility.  If Gilead or Glaxo elects to do \nso, Isis will grant any necessary authority to Gilead.  Gilead will determine \nwhether Gilead or Glaxo shall take such responsibility at their expense.  \nIsis assumes no obligation to Glaxo as a result of its agreement with Gilead \nin this Section 5.1.\n\n                      5.2     NOTICE OF INFRINGEMENT.  Isis shall promptly \nnotify Gilead in writing of any infringement of any assigned Patent Right(s) \nof which it becomes aware.\n\n                      5.3     ENFORCEMENT OF PATENTS.  Except as otherwise \nset forth in this Section, Isis may, but shall not be required to, prosecute \nany alleged infringement or threatened infringement of any assigned Patent \nRight(s) of which it is aware or which is brought to its attention.  Isis \nshall act in its own name and at its own expense.  If Isis has failed to \nprosecute under the first sentence of this paragraph with respect to alleged \nor threatened infringement \n\n------------------------\n[***]=CONFIDENTIAL TREATMENT REQUESTED\n\n\n                                       4.\n\n\n\nrelating to any Patent Right(s) (i) two months after it has been notified in \nwriting of such alleged infringement, or (ii) one month before the time \nlimit, if any, set forth in the appropriate laws and regulations for the \nfiling of such actions, whichever comes first, Gilead (or at its election \nGlaxo) may, but shall not be required to, prosecute any such alleged \ninfringement or threatened infringement of a Patent within the Patent Rights. \nIn any such event, Gilead or Glaxo shall be free to act in its own name and \nat its own expense.  Notwithstanding the foregoing and as between the \nparties, Gilead shall have the sole and exclusive right of enforcement with \nrespect to any alleged or threatened infringement of any right within the \nscope of the license granted in Section 2.3 of this Agreement.  Isis shall \ncooperate fully with Gilead or Glaxo in any action by Gilead or Glaxo, \nrespectively, under this paragraph, including if required in order to bring \nsuch an action, the furnishing of a power of attorney.\n\n               6.     INDEMNITY AND WARRANTY.\n\n                      6.1     INDEMNITY BY ISIS. Isis will indemnify, save, \ndefend and hold Gilead and its agents, directors and employees harmless from \nand against any and all suits, claims, actions, demands, liabilities, \nexpenses and\/or loss, including reasonable legal expense and attorneys fees, \nresulting from activities under this agreement by Isis.  \n\n                      6.2     INDEMNITY BY GILEAD.  Gilead will indemnify, \nsave, defend and hold Isis and its agents, directors and employees harmless \nfrom and against any and all suits, claims, actions, demands, liabilities, \nexpenses and\/or loss, including reasonable legal expense and attorney fees, \nresulting from (i) Gilead's, Gilead's sublicensee's or Gilead's assignee's \nactivities under the licenses provided for in Sections 2.3 and 2.5; (ii) \nGilead's contractual obligations to third parties including Glaxo and Glen \nResearch, except to the extent resulting from Isis' activities under this \nAgreement; or (iii) Gilead's exercise of the Patent Rights prior to the \nEffective Date.\n\n                      6.3     WARRANTY.  Gilead warrants that it has \nsufficient right and title to enter into and to perform its obligations under \nthis Agreement. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PARTIES \nDISCLAIM ALL WARRANTIES OF ANY NATURE, EXPRESS OR IMPLIED, INCLUDING WITHOUT \nLIMITATION WARRANTIES OF VALIDITY, MERCHANTABILITY, NONINFRINGEMENT, AND \nFITNESS FOR A PARTICULAR PURPOSE.\n\n               7.     CONFIDENTIALITY. Confidential Information under the \nterms of this Agreement is all information relating to the Patent Rights  \nsold, assigned or licensed to Isis under Section 2.1 and the Technology \nTransfer to Isis by Gilead under Section 4.1.  Gilead agrees to treat the \nConfidential Information as confidential and to protect and maintain the \nconfidentiality thereof.  Gilead will use at least the same standard of care \nas it uses to protect its own Confidential Information to ensure that its \nemployees, agents, and consultants do not disclose or make any unauthorized \nuse of such Confidential Information.  Gilead will promptly notify Isis upon \ndiscovery of any unauthorized use or disclosure of the Confidential \nInformation. Confidential Information will not include any information which \nis generally available to the public, is otherwise part of the public domain \nother than through any act or omission of Gilead in breach of this Agreement, \nor which is required to be disclosed by law or contract entered into \n\n\n                                       5.\n\n\n\nprior to this Agreement (provided that Isis shall have notice thereof in \nadvance so that it can act to protect its interests should it decide to do \nso).\n\n               8.     CONSIDERATION.  Isis shall pay Gilead the following \nnoncontingent, non-refundable cash payments as consideration for the \nassignments provided for in this Agreement: $2,000,000 on the Effective Date, \n$1,000,000 on the first anniversary of the Effective Date, $1,000,000 on the \nsecond anniversary of the Effective Date, and $2,000,000 on the third \nanniversary of the Effective Date, for total payments of $6,000,000.  In the \nevent that Isis defaults on any of these payments, after thirty (30) days \nnotice and an opportunity to cure, then ownership of all Patent Rights will \nautomatically revert to Gilead and Isis will take all actions reasonably \nrequested by Gilead for such purposes, including, without limitation, signing \nand delivering any applicable assignments and other documents.  Isis shall be \nentitled to no damages exceeding the consideration set forth in this Section \n8 for any uncured claim against Gilead respecting Gilead's performance or \nrepresentations hereunder.\n\n               9.     NOTICES.  Notices under this Agreement shall be \nsufficient only if personally delivered, delivered by a major commercial \nrapid delivery courier service, facsimile or mailed by certified or \nregistered mail, return receipt requested, to a party at its addresses set \nforth as follows:\n\n               If to Isis:    Isis Pharmaceuticals, Inc.\n                              2292 Faraday Avenue\n                              Carlsbad, CA 92008\n                              Attn:  Executive Vice President, CFO\n                              Facsimile:  (760) 431-9448\n               \n               If to Gilead:  Gilead Sciences, Inc.\n                              333 Lakeside Drive\n                              Foster City, CA 94404\n                              Attn:  Vice President, Intellectual Property\n                              Facsimile:  (650) 577-6622\n               \n               If to Glaxo:   Glaxo Wellcome, Inc.\n                              Five Moore Drive\n                              Research Triangle Park, NC 27709\n                              Attn:  Company Secretary\n                              Facsimile:  (919) 483-0265\n               \n               10.    MISCELLANEOUS.     If any provision of this Agreement \nshall be adjudged by any court of competent jurisdiction to be unenforceable \nor invalid, that provision shall be limited or eliminated to the minimum \nextent necessary to continue to effect the intent of the parties, and this \nAgreement shall otherwise remain in full force and effect and enforceable.  \nAny waivers or amendments shall be effective only if made in writing and \nsigned by a representative of the respective parties authorized to bind the \nparties.  This Agreement shall be governed by the laws of the State of \nDelaware, excluding conflicts-of-law principles.  This Agreement is the \ncomplete and exclusive statement of the mutual understanding of the parties \nand supersedes and cancels all previous written and oral agreements and \ncommunications relating to the subject matter of this \n\n\n                                       6.\n\n\n\nAgreement, excluding the Confidential Disclosure Agreement between the \nparties dated July 29, 1998.\n\n\n                                       7.\n\n\n\n         IN WITNESS WHEREOF, the parties have executed this Agreement as of the \nday and year first indicated above.\n\nISIS PHARMACEUTICALS, INC.                 GILEAD SCIENCES, INC.\n\nBy:  \/s\/  B. Lynne Parshall                By:  \/s\/  Mark L. Perry\n    ------------------------------            ------------------------------\n\nPrinted:  B. Lynne Parshall                Printed:  Mark L. Perry\n        --------------------------                 --------------------------\n\nTitle: Executive Vice President, CFO       Title: Sr. Vice President, Chief \n                                           Financial Officer and General Counsel\nAddress: 2292 Faraday Avenue\n         Carlsbad, CA 92008                Address: 333 Lakeside Drive\n                                                    Foster City, CA 94404\n\n\n                                       8.\n\n\n\n12\/16\/98                            EXHIBIT A\n\n\n\n-----------------------------------------------------------------------------------------------------------------------------------\nGSI #         INFORMAL       FILING     FOR.FILING       ISSUE        EXP.                                         FOREIGN   ANNTY\n M&amp;F           TITLE          DATE         DATE          DATE        DATE       COUNTRY\/SER #      PATENT #        ASSOC.    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('Isis'), a \nbiopharmaceutical company based in Carlsbad, California, pursuant to which \nGilead will assign all of its antisense patent rights to Isis. As part of \nthis Agreement, Gilead will be assigning to Isis the License Agreement \nbetween Gilead and Glen Research Corporation dated January 1, 1994, as \namended November 19, 1996 (the 'License Agreement'). The purpose of this \nletter is to obtain the formal consent of Glen Research Corporation to the \nproposed assignment of the License Agreement to Isis, as required by Section \n16 of the License Agreement. Please indicate your consent to the assignment \nby executing and dating this letter in the space indicated below and \nreturning it to my attention via facsimile at (650) 577-5488. When you \nreceive the original copy of the letter please execute and date it (using the \nsame date) and return it to me by courier.\n\nWe would be happy to discuss the proposed assignment in more detail with you, \nor put you in touch with appropriate people at Isis. Please give me a call at \n(650) 573-4772, or John Milligan at (650) 573-4756, if you have any \nquestions. Thank you for your prompt response to this matter.\n\nVery truly yours,\n\n\/s\/ Jeffrey W. Bird\nJeffrey W. Bird, M.D., Ph.D.\nSenior Vice President, Business Operations\n\nACCEPTED AND AGREED TO:\nGlen Research Corporation\n\nBy \/s\/ Hugh Mackie\n\nName: Hugh Mackie\nTitle: President\nDate: December 17, 1998\n\n<\/pre>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7639,7919],"corporate_contracts_industries":[9405,9407],"corporate_contracts_types":[9613,9616],"class_list":["post-42660","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-gilead-sciences-inc","corporate_contracts_companies-isis-pharmaceuticals-inc","corporate_contracts_industries-drugs__biotech","corporate_contracts_industries-drugs__pharma","corporate_contracts_types-operations","corporate_contracts_types-operations__ip"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/42660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=42660"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=42660"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=42660"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=42660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}