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From National Journal magazine March 2, 2002
The
New Patent Puzzle
By Neil Munro
The world's first cloned cat, CC, was advertised as a prototype
for the pet-cloning market by her corporate parent, Texas-based
Genetic Savings & Clone. But she is also a prototype for a much
larger market for "animal models," or animals created for use
in medical experiments. And she is a precursor to what many researchers
and biotech entrepreneurs see as an important new arena the cloning
and use of human embryos for specific research and commercial
purposes. Cloning technologies depend on patents for their commercialization
and growth. The U.S. Patent and Trademark Office has already begun
awarding these valuable patents for cloning techniques for many
types of "modified" animals, and for some cells grown from human
stem cells. Biotech experts predict that the patent office will
eventually grant patents for methods used in human-embryo cloning.
But in the new biotechnology, "the boundary is quite blurred"
between what is human and what is nonhuman, said Kent Cheng, a
lawyer with the NewYork-based law firm of Cohen, Pontani, Lieberman
& Pavane, which specializes in patent issues. The market in animal
models is already large, with one company claiming revenue of
more than $500 million a year. In 2000 alone, 25,560 ordinary
cats plus another 1.4 million animals, not counting mice, rats,
and birds were used in medical experiments. The cats were used
principally for research into AIDS, the human brain, and various
viruses. Specially bred disease-free cats can be sold for up to
$600. But even that is far less than the price of designer mice
mice that have been given human genes, or carry unusual mice genes,
or have particular genes "knocked out." The price of these mice,
many of which are patented, can exceed $2,000 for a breeding pair,
depending on the desires of the buyer and the seller. There are
more than 1,000 types of these specialty mice, said Joyce Peterson,
a spokeswoman for the Jackson Laboratory in Bar Harbor, Maine.
The lab develops and breeds mice and other animals for research.
Indeed, these mice are so important that the National Institutes
of Health is funding two groups, each of which is to develop 50
new types of mouse models each year, Peterson said. Overall, the
annual U.S. market for animal models is more than $1 billion.
The technology used to clone CC allows cats to play in this specialty
market. Twenty cloned cats would produce the same quality of research
data that now requires 40 ordinary cats, said Duane Kraemer, a
professor at Texas A&M University and a principal at Genetic Savings
& Clone. And these genetically engineered cats can be patented,
hindering other companies from developing them, according to Charles
Long, the company's general manager. To clone CC, Genetic Savings
& Clone paid to use other companies' patented cloning techniques,
"but we hope to change the process so significantly that we wouldn't
be bound by other patents, and we'd have our own [genetic-engineering
patents] that someone might license," Long said. "That's the position
you want to get yourself in -- to get others to pay." That's where
the Patent and Trademark Office enters the picture. Companies
can obtain patents on new animals that are "novel" and "nonobvious,"
and that have substantial, credible, and significant utility.
The patent office has already awarded many patents for modified
mice, including mice that carry human genes, and mice designed
to mimic human psoriasis, Huntington's disease, cancer, and many
other ailments. These patents can be very valuable, especially
for companies that stake years of expensive research on the prospect
of winning them. For example, Advanced Cell Technology Inc. in
Worcester, Mass., holds patent No.5,945,577, which is for the
creation, via cloning, of genetically modified nonhuman mammals.
Two other companies, Geron Corp. in Menlo Park, Calif., and Infigen
Inc. in DeForest, Wis., have protested, arguing that ACT's patent
interferes with their patent applications. In early February,
the patent office agreed to consider the dispute, but the fight
over the patenting of nonhuman mammals is only a precursor to
a much more difficult debate: To what extent can human clones
be patented? Some researchers say that cloned human "embryo models"
will provide the best and in some cases, the only way to study
some aspects of human biology, particularly the gradual emergence
of genetic diseases and traits. The leading proponent of human
research cloning is Irving Weissman, who helped found a biotech
company, StemCells Inc., in Palo Alto, Calif., which is now backed
by biotech giant Amgen. He argues that stem cells from human embryos
produced by cloning can serve as valuable laboratory models and
as the foundation for the next stage in biotech's evolution. Such
models should be created and used, Weissman said, even if other
researchers use stem cells from adults to repair diseases. "Even
if we could treat one disease, or two or five or 10, with adult
stem cells that are around, I would not block research that would
open up whole fields," Weissman said. He was speaking at a February
6 Senate Judiciary hearing chaired by Sen. Dianne Feinstein, D-Calif.,
who has drafted a bill that would ban the implantation of cloned
embryos in women's uteruses. Feinstein's bill stands in opposition
to legislation pushed by Sen. Sam Brownback, R-Kan., that would
ban human cloning for any purpose. The House has already passed
a comprehensive ban on human cloning. Weissman is well-versed
in patent policy. In 1997, he sold his SyStemixInc. for a reported
price of $570 million, netting himself $25 million. The company's
value was based on its critical patents, including a patent for
one of the earliest mouse models, called a SCID-hu mouse, which
incorporates a human immune system transplanted from an aborted
fetus. Several competing varieties of the SCID mice are now used,
along with cats and other models, to study AIDS. According to
Weissman, the patent office will be reluctant to grant a single
broad patent for all research cloning of human embryos, partly
because his discussion of the concept in public means it couldn't
pass the "novelty" test. But Weissman predicted that the patent
office will be much more likely to grant narrow patents to those
who actually create cloned human embryos with particular genetic
features and then use them to create millions of stem cells carrying
those genetic features for study by researchers. These features
could include a predisposition to breast cancer, or to Lou Gehrig's
disease, for example. He asserts that it would be in the public
interest to grant patents to researchers who first develop such
"nuclear transfer models," because they provide the best model
for the study of diseases. Weissman believes that there could
be very many such patents granted, especially as scientists develop
improved versions of these models. He says that an embryo itself
cannot be patented, because it has no utility except as a source
of valuable stem cells for researchers. At least one other researcher,
however, says the embryos themselves are valuable for study. The
patent office has gone part way toward realizing Weissman's prediction.
Last September, the office granted a patent to Neuralstem Inc.
in Gaithersburg, Md., for brain cells grown from stem cells extracted
from aborted fetuses. The brain cells are sold in batches for
$990 to companies that develop and test drugs. The cells may also
be used for transplantation into patients with Parkinson's disease.
But no human-embryo-based patents should be awarded, says Peter
Di Mauro, a scientist and patent agent with the Washington-based
International Center for Technology Assessment, which opposes
human cloning. Even if the embryo-based models prove useful, he
said, they violate the patent office's rules that inventions should
not be "detrimental to the public interest." He also contends
that the many other models can provide the information scientists
need. The Patent and Trademark Office is not eager to join the
debate on granting patents for cloning human embryos. When asked
for a comment, its chief spokesman, Richard Maulsby, would say
only, "The U.S. Patent and Trademark Office does not issue patents
drawn to human beings." The key issue will be the patent office's
interpretation of patents that involve humans and cloning, said
Lila Feisee, a patent expert for the Biotechnology Industry Organization.
"The patent office won't sit down and define 'human' ... but I
do know that they do patent stem cells, and methods of ... deriving
them from cloned embryos." But Bruce Lehman, who served as head
of the patent office from to 1993 to 1998 and now heads the Washington-based
International Intellectual Property Institute, said that, on that
difficult issue, "I would not have even proposed a decision myself
[because it] is something that would go up to the President."
Lehman said that the question lies "at the heart of the 'is an
embryo a person' debate," but it does not implicate the 1973 Roe
v. Wade decision legalizing abortion, principally because there
is no pregnant mother involved. But supporters of President Bush
and patent office director James Rogan, said Lehman, include those
who believe "any human embryo is [human] life," so "it would be
completely inconsistent for them to patent that kind of subject
matter." He added, "I'm glad I don't have to be involved in that;
the factory manufacturing of human beings is a very serious issue."
Already, some researchers, including Michael West, the head of
ACT, argue that a cloned embryo of less than 14 days, or perhaps
one that hasn't developed a brain, is not human but is merely
cellular life that can be owned and patented. Others, including
some scientists, anti-abortion-rights advocates, and left-of-center
opponents of biotechnology, argue that human life exists from
conception. "I don't think the Supreme Court has been able to
answer that question," Feisee said. Political opposition may delay
the award of a patent, Weissman said, "but in the end, a judge
or some judges will decide" the legal issue. If a model is worth
developing, he said, it is worth patenting.
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