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Integrated Genomics, Inc v. Tillman Gerngross

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ARGUED APRIL 15, 2010

Before BAUER, ROVNER, and HAMILTON, Circuit Judges.

In 2002, Integrated Genomics, Inc. (“IG”) granted Tillman Gerngross, a bioengineering professor at Dartmouth College, a license to use genetic sequencing data that it had developed on a common yeast. Gerngross did not disclose to IG that he intended to use the data in connection with a private business venture rather than for purely academic purposes. Gerngross was charged an academic rate for the license which, IG alleges, was much less than it would have charged him for commercial use of the data. Four years later, Gerngross’s business was sold for many millions of dollars. IG filed suit against Gerngross, con-tending that he had defrauded IG by failing to disclose that he intended to use the sequencing data for commercial purposes and that Gerngross had breached his license agreement with IG by “publishing” the licensed sequencing data to his business and to its buyer. The district court entered summary judgment in favor of Gerngross on the contract claim and, after a trial on the fraud claim, found that even if Gerngross was deceitful in failing to disclose his intended use of the data, the evidence did not clearly and convincingly show that IG would have charged him more for the license had it been aware of that use. We affirm.

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