Melbourne-based gene testing company Genetic Technologies appears to be nearing settlement of its long-running court case against U.S. rival Applera Corp. over Applera's refusal to take a licence to use GTG's patents on the use of so-called 'junk' DNA markers for gene testing.
Trading in GTG's shares was halted last Thursday pending an announcement on the case from the U.S. District Court of Northern California, in San Francisco, which has been mediating in the case.
Applera was one of three companies sued by GTG early last year for infringing its non-coding DNA marker technology, and the lone holdout after the other two, Novelo and Covance, agreed to pay license fees to the Australian company.
GTG and Applera underwent two unsuccessful rounds of mediation in September last year, and in February this year, and entered a third round in August, at which the court-appointed mediator, Magistrate Judge Joseph Spero, ordered all details of the mediation be filed under seal -- in effect, that details and documents be kept completely confidential.
According to GTG executive chairman Dr Merv Jacobson, legal counsel for Applera and GTG jointly prepared a document to keep the court updated on progress in their negotiations.
The companies learned last Thursday that the court had posted the document on its web site. It reported that the parties have reached an in-principle settlement, and a confidential term sheet has been submitted to the court.
GTG and Applera are now "working diligently" to complete a binding settlement agreement and associated documents, that are expected to be signed no later than Wednesday this week, Jacobson said.
The order did no more than record the progress being made towards effecting a settlement, and according to Jacobson, made it clear a final settlement has not been reached.