MedImmune is paying licence fees to Genentech for antibody technology that is used for Synagis, the blockbuster respiratory drug that accounted for ∼80% of MedImmune's revenue in 2005. Genentech was awarded the patents (US4,816,567 and US6,331,415) for the antibody technology following a patent interference suit with Celltech and became entitled to receive royalty payments from MedImmune. MedImmune subsequently filed suit against Genentech, claiming patent infringement, antitrust violations and unfair competition, but has still continued to pay royalties since the suit was filed, thereby avoiding legal costs and continuing its production of Synagis. In its defence, MedImmune argued that it should not have to stop paying licence fees before applying to court for judgement on whether a patent is valid.

In hearing the case, the Supreme Court had to consider Article III of the US Constitution, which states that for a patent to be litigated, 'case or controversy' must exist. Genentech had argued that by paying licence fees, MedImmune accepted the validity of Genentech's patents, and that there was no such case or controversy, which the Federal circuit affirmed. However, the Supreme Court allowed the case to proceed, finding that the parties had sufficient adverse legal interests to satisfy the requirements of the case-or-controversy statute.

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