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To: Jenna who wrote (116115)	11/6/2000 3:52:11 PM
From: Frederick Langford	Respond to of 120523

11/05 21:04 Oxford Gene seeks up to $120 mln in damages from Affymetrix By Rita Farrell WILMINGTON, Del., Nov 5 (Reuters) - Oxford Gene Technology Ltd. will seek damages of up to $120 million from Affymetrix Inc. <AFFX.O> for alleged willful infringement of an Oxford patent in a trial that begins on Monday, Reuters has learned from court papers. Last week Affymetrix stock soared more than 40 percent, closing at 84-59/64 on Friday, following a favorable decision by a British court in a related case. A UK Appeals Court ruled on Thursday that Santa Clara, California-based Affymetrix acquired Beckman Coulter's license for the Oxford technology when it bought Beckman's gene-chip operation in June 1999. Because that ruling halved the period of Affymetrix' alleged infringement, Oxford has reduced its damages claim from $80 million to about $40 million. UK-based Oxford has asked that the damages be tripled to $120 million for alleged willful, or intentional, infringement. At issue is Oxford's patent, used to analyze genetic material, titled an "Apparatus and method for analyzing polynucleotide sequences and method of generating oligonucleotide arrays." In the jury trial beginning Monday before U.S. District Court Judge Joseph Farnan, three issues will be decided in consecutive trials. They are whether - and which - products of Affymetrix' GeneChip line infringed the Oxford patent; the validity of the patent itself; and what damages, if any, Affymetrix should pay. The trial is expected to take a total of about 12 to 14 days. Because Oxford does not itself make a product, it cannot claim damages for lost profits. Instead any award would be based on the length of time of an alleged infringement and the rate of a reasonable royalty. Oxford is asking that damages be based on a 25 percent royalty plus interest, up-front fees, and legal costs, court papers say. Affymetrix cited no specific rate, but said it would "demonstrate that the royalty rate sought by (Oxford) is not reasonable." Affymetrix claims that Oxford's patent is invalid because the technology was anticipated by earlier inventions and also would have been obvious to someone skilled in the field. In a pre-trial hearing on Friday before Judge Farnan, Reuters learned that an attorney for Affymetrix, Barbara Caulfield, claimed outside parties were funding Oxford's lawsuit "and that there is a $24 million war chest". Affymetrix attorney Chris Ottenweller said, "The documents that we've seen, which are financing agreements, provide that Agilent (Technologies Inc. <A.N>) would pay at least $15 million as a loan with very limited payback provisions to pay for the legal fees of (Oxford) in this case," according to court records. In the hearing, Oxford attorney Robert Krupka rejected what he said was Affymetrix' contention that there was "some kind of arch-conspiracy" to finance the Delaware case. Agilent is a life sciences company and provider of semiconductor components. No one at its Palo Alto, California offices could be reached for comment on Sunday night. ((Wilmington Bureau, 302-658-4620)) COPYRIGHT © 1999 REUTERS LIMITED. ALL RIGHTS RESERVED.