| Stem cells, undifferentiated cells which have the | | | | people in March 2006 revealed a new problem. The |
| ability to turn into specific cell types, hold promise to | | | | holders of patents which already exist in the area |
| beneficially impact health problems such as diabetes, | | | | want future researchers (such as those in California) |
| Parkinson's and Alzheimer's diseases, stroke, heart | | | | to pay them for doing research utilizing their patents. |
| attack and spinal cord injury. Before his death, | | | | Ironically, the demand was made by one state |
| Christopher Reeve was a strong advocate of | | | | (Wisconsin's WARF) against another state (California's |
| research in stem cells.There has been controversy | | | | CIRM). With the announcement that South Korea will |
| about certain types of stem cells. There are three | | | | proceed with patent applications of the disgraced |
| sources of stem cells, of which one type, cells | | | | researcher Woo Suk Hwang, one realizes that there |
| derived from early stage human embryos, has | | | | are likely to be many patent holders in the field, all |
| caused political division, because the creation of an | | | | seeking to cash in on the large amounts of money |
| embryonic stem cell "line" requires the destruction of | | | | being made available by states such as California, |
| a human embryo. Because of this, President Bush in | | | | New Jersey, Maryland, Connecticut, and Illinois. An |
| 2001, stated his intention to "allow federal funds to | | | | important message to appreciate is that money from |
| be used for research on existing stem cell lines, | | | | state-funding of stem cell research intended to |
| where the life and death decision has already been | | | | create new horizons in medical treatment may be |
| made," but no federal funds would be available for | | | | directed to paying off holders of already-created |
| new stem cell lines. This choice has been debated. | | | | rights.Some of the problems may be resolved. A |
| The television show "60 Minutes" reviewed the issue | | | | recent decision by the Supreme Court (Merck v. |
| twice in the month of February 2006, on February 12 | | | | Integra) defines a large safe harbor for those |
| and on February 26.In the state of New Jersey, the | | | | conducting research needed to obtain federal |
| debate has been roughly on partisan lines, with | | | | regulatory approval (e.g., FDA approval). This research |
| Democrats favoring funding of stem reseach, and | | | | exemption may moderate the impact of claims such |
| (some) Republicans opposed. However, there is a | | | | as those by Wisconsin against California. However, |
| separate division as to "what kind" of stem cell | | | | expectations of tangible results on a short time scale |
| research. Hedging its bets, New Jersey has proposed | | | | may be unrealistic. One may question whether state |
| spending $150 million on cutting-edge research on | | | | funding will produce any FDA approved embryonic |
| stem cells, including the controversial embryonic stem | | | | stem cell therapy in ten years. Patents issued in the |
| cells, $50 million on research on less controversial | | | | next few years may be "too soon" in time because |
| research focused on stem cells from cord blood, | | | | commercialization of embryonic stem cell work is a |
| placentas and other human tissue, and $50 million on | | | | long way off. This is an exciting time in a promising |
| a center directed to commercial applications and | | | | area, but with the unknowns one must recognize |
| clinical trials of adult stem cells.The area of commercial | | | | that there will be bumps in the road.Lawrence B. |
| applications has created unanticipated problems in the | | | | Ebert is a registered patent attorney located in |
| brave new world of large-scale state-funding of | | | | central New Jersey. He holds a Ph.D. from Stanford, a |
| research. A legal opinion in 2005 prepared for | | | | J.D. from the University of Chicago, maintains a blog |
| California State Treasurer Angelides suggested that | | | | at IPBiz.blogspot.com, and is the author of LESSONS |
| tax-exempt bonds could not be used to fund | | | | TO BE LEARNED FROM THE HWANG MATTER: |
| research wherein the state would share in money | | | | ANALYZING INNOVATION THE RIGHT WAY, |
| generated by the research (specifically sharing in | | | | published in the Journal of the Patent & Trademark |
| payments by people who used patents generated by | | | | Office Society [JPTOS] in March 2006. |
| the state-funded research). A meeting of stem cell | | | | |