For anyone interested in GTG's DNA patented rights Robert Gottliebsen wrote an interesting article on them in the Australian last week. Hope this helps
April 28, 2003 DNA research is now one of the world boom industries and it presents Australia's Dr Mervyn Jacobson and his Melbourne-based Genetic Technologies with an incredible opportunity.
One by one he is contacting around 900 DNA global researchers (including those providing equipment) and informing them his company may have patented rights over a significant part of their work. About a third of the researchers appear to be infringing the Genetic Technologies patents.
Incredibly, Jacobson may have secured patent protection over accessing information from what many scientists think is the operating system of DNA – the living equivalent of what Microsoft has in the IT space (New Scientist, June 2002).
Jacobson won't become a Bill Gates because Genetic Technologies patents run out between 2010 and 2015.
But already some of the large research companies are agreeing to pay lump sums and award royalties.
And, as the patent rights are recognised, with each deal the price goes up.
Recently Genetic technologies achieved a cross-licensing agreement with Pyrosequencing AB of Sweden which includes a $US500,000 ($807,000) signing fee and rolling royalties.
Earlier, US-based Myriad Genetics agreed to pay a $US1 million upfront fee and rights to its range of susceptibility tests, including breast cancer and other inherited diseases.
Pearlegen Sciences of the US granted a licence worth $US860,000 plus royalties and there are 30 deals under active negotiation.
How can a small Australian company have patent rights over what could be the operating system for all living creatures? Back in the 1980s scientists researching genes believed the key elements were certain coded parts of the gene and the uncoded parts of the gene were called "junk".
And the material that connects the genes was also classed as junk.
But Mervyn Jacobson says he couldn't believe God could have created "junk" material – "junk DNA" had to have a value – and he backed the remarkable genetic science of New Zealander Malcolm Simons.
Jacobson set up a research centre in Melbourne and with Simons began to understand that the "non-coding" DNA was a valuable reservoir of useful genetic information.
It could lead to improved tissue typing in bone marrow transplantation, improved DNA diagnostics and new techniques for improved mapping of the genome.
But the scientific community said they were both mad.
In all, via various companies, Jacobson spent $20 million over 13 years.
Most important, from 1990 onwards he took on the incredible task of applying for patents in most countries. These patents give Genetic Technologies power over a broad area of non-coding DNA in basically all genes and in all species.
The patents involve a strategy for accessing the information in "non-coding" DNA.
Japan was one of the last patents to be granted and by the time the Japanese agreed it only had seven years to run.
Jacobson and his Melbourne-based listed company, Genetic Technologies, are no longer regarded as a joke.
Many powerful DNA research groups are tempted to challenge Genetic Technologies in the global courts, reckoning that with only $7 million in the bank it couldn't fund a major case. Jacobson predicted this danger and took out patent insurance underwritten by GE, ensuring that the research giants will have to take on the largest company in the world if they want to bust the patents.
It's better to pay.
Jacobson sets the price at a level which won't break the research company and gives Genetic Technologies a share in future discoveries.
In the nine months to March 31 the company received cash licensing payments of $6 million.
While this was five times the year before the figure is set to rise further as more and more doors are knocked-on.
Broker Southern Cross Equities predicts that by 2007 it could be between $12 million and $36 million.
But these figures may be ridiculously low, depending on how many deals are done.
And the royalties may turn out to have greater value.
The company's position in global DNA research is a fantastic platform for Australia, one we never achieved in the IT boom.
Robert Gottliebsen writes four columns a week for The Australian and broadcasts each night on ABC Asia Pacific TV.
