Illumina offers patent licences to rivals, patent truce with BGI -sources
2022.07.27 16:46
A building on the campus at the world headquarters of Illumina is shown in San Diego, California, U.S., September 1, 2021. REUTERS/Mike Blake
By Foo Yun Chee
BRUSSELS (Reuters) – Illumina (NASDAQ:ILMN) has offered rivals royalty-free global licences for some of its patents and a three-year patent truce with Chinese rival BGI in Europe in a bid to address EU antitrust concerns over its acquisition of Grail, people familiar with the matter said.
The U.S. life sciences company submitted the concessions to the European Commission last week.
They consist of royalty-free global licences to rivals of next-generation sequencing technology and equipment and a pledge not to pursue any patent litigation against BGI in Europe, the sources said.
The EU antitrust watchdog had sought feedback from rivals and customers, giving them until Tuesday to do so, they said.
The Commission, which is scheduled to decide on the case by Sept. 12, declined to comment on the concessions.
“We remain focused on working with the Commission to reach a resolution,” Illumina said in an email.
The company may struggle to win over the EU antitrust enforcer, however, as it has only offered a narrow range of patents, some of the sources said.
The U.S. Federal Trade Commission is suing to stop the deal.
The patent truce offer with BGI came after Illumina reached a deal with the Chinese genomics company on a three-year litigation standstill in the United States.
The companies have been embroiled in a global legal battle over their respective sequencing technologies, with court cases in countries including Germany, Denmark, Switzerland, and Turkey.
Illumina had offered concessions in January, which included price cuts and giving rivals’ continued access to its technologies, but that failed to convince the EU antitrust watchdog, people familiar with the matter told Reuters.
