Patent licensing relationships often feel like an intellectual property soap opera, chock-full of dirty fights, drawn-out negotiations, and complicated back stories. In January, two U.S. Supreme Court rulings introduced a new plot twist, and now patent lawyers, licensors, and licensees are gearing up for a season of major catfights.

The rulings, both in favor of pharmaceutical developer MedImmune Inc., give companies more leverage to challenge the legitimacy of the patents that they license from patent holders. The decision could destabilize countless agreements, throwing companies back into negotiations, or even worse, into court for the patent equivalent of divorce proceedings. The ruling has a much larger impact than many Supreme Court decisions because it has a retroactive effect, says Nixon Peabody IP partner Lawrence Sung. It affects both new licenses and what people will do with existing licenses.

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