Finnegan secures $180M for CSRC in complex arbitrations

International CSRC Investment Holdings Co., Ltd. (CSRC) and its subsidiaries granted Genzyme an exclusive license to several European and U.S. patents directed to treating Pompe Disease, a rare genetic disorder that is often fatal if untreated. Genzyme sells the only FDA-approved treatment for Pompe Disease and reports hundreds of millions in revenue annually from Genzyme’s market exclusivity and under CSRC’s license. Genzyme initiated arbitrations before the American Arbitration Association (AAA), arguing that its royalty obligations in Europe had ceased and its U.S. royalty obligations should end nearly two years before the expiration of the last licensed patent. CSRC also initiated a related litigation against Duke University for failing to assign to CSRC certain patents relating to the Pompe disease treatment research CSRC sponsored. CSRC reached a settlement agreement with Genzyme regarding the AAA arbitrations, with Genzyme agreeing to pay $180M as a compromise of the amount in dispute.