Omni Medsci, Inc. v. Apple Inc., No. 20-1715 (Fed. Cir. 2021)
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Dr. Islam, a tenured electrical and computer engineering professor at University of Michigan, received an additional appointment at UM’s medical school. Upon joining the faculty, he executed an employment agreement and agreed to abide by UM’s bylaws, which provide that patents issued or acquired as a result of or in connection with administration, research, or other educational activities supported directly or indirectly by funds administered by the University and all revenues derived therefrom are the property of the University. Property rights in computer software resulting from activities that received no support are the property creator. In cases involving both University-supported activity and independent activity, property rights in resulting work products are owned as agreed upon before any exploitation thereof.
In 2012, Islam took an unpaid leave-of-absence from UM to start a new Biomedical Laser Company. During his leave, Islam filed provisional patent applications. Upon returning to UM, he filed non-provisional applications claiming priority to those provisional applications. Islam later assigned the patent rights to Omni. Those patents are ancestors of the patents-in-suit, which are not directly related to Islam’s teaching. UM refused to confirm Islam’s ownership of his inventions, noting the expenditure of medical school funds to support the cost of Islam’s space, time required to process Islam’s appointment to the medical school, and “medical school faculty partners who have helped springboard ideas.”
In 2018, Omni sued Apple, asserting infringement. The district court denied Apple’s motion to dismiss for lack of standing. The Federal Circuit affirmed. UM’s bylaws did not effectuate a present automatic assignment of Islam’s patent rights.
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