Facts

The Florey Institute of Neuroscience and Mental Health sued Kleiner Perkins Caufield & Byers, KPCB Holdings Inc., and others.

PLAINTIFF'S CONTENTIONS:
In 1982, Florey entered a research collaboration and IP licensing agreement with Genentech for its relaxin-related intellectual property. Genentech later established Connectics Corp., which had a sublicensing agreement with Genentech to use Florey's intellectual property. In 1995, Connectics requested that Florey enter into a separate research agreement with it, and reduce the royalty rate under the existing contracts. Florey worried that Connectics was trying to avoid future payment obligations, and sought assurances that it would not do so.

In 2001, Connectics' decided its research on scleroderma was unsuccessful, and founded a new business entity called Corthera. Kleiner Perkins and Breining, a Corthera founder, sought a new licensing agreement from Connectics for Corthera. Florey and Corthera then collaborated on research. In 2008, Corthera achieved positive results on its relaxin research for treating patients with acute heart failure.

The pharmaceutical company Novartis then decided to purchase Corthera for $120 million. Novartis purchased all of Corthera's stock, and made additional payments up to $500 million for Corthera's shareholders.

Result

The court dismissed Florey's suit.