Record-Setting Jury Verdict Could Mean (More) Profits for NYU

The biggest patent-infringement verdict in United States history could produce yet another financial windfall for New York University — on top of the $650-million it made two years ago, when it sold its rights to royalties on the drug Remicade.

Last week a jury in Texas ordered Abbott Laboratories to pay $1.67-billion to a Johnson & Johnson unit, Centocor, finding that Abbott’s drug Humira had willfully infringed on patents owned by Centocor and NYU. The patents are used in making Remicade. Both Remicade and Humira are used to treat arthritis and other autoimmune diseases.

Although NYU sold most of its rights to future royalties from Remicade in May 2007, a provision in the deal entitles the university to further royalties if sales of the drug exceed a certain, undisclosed level.

Thanks to that provision, a portion of the damages from the verdict would go to NYU, according to Abram M. Goldfinger, director of industrial liaison in the university’s Office of Science Technology Administration. That was more than a lucky break. NYU and Centocor sued Abbott less than a month before the royalty deal was finalized, and the university made sure that the deal allowed for the possibility of additional revenue that might arise from the litigation.

But Mr. Goldfinger said the university isn’t holding its breath for the money. Abbott has said it will appeal the verdict, so it could be years, if ever, before NYU sees any money from the judgment.

Meanwhile, Abbott faces another patent-infringement claim on Humira from another university. Last month the University of Iowa sued Abbott in federal court in Iowa, saying Humira infringed two of its patents on a cloning technique developed by Mark F. Stinski, a professor of microbial virology. —Goldie Blumenstyk