Integrated Genomics, Inc. v. Gerngross
636 F.3d 853
7th Cir.2011Background
- IG licensed Pichia data to Gerngross in 2002; Gerngross did not disclose GlycoFi commercial venture.
- IG charged academic rate ($5,000) and provided standard academic license terms limiting publication.
- GlycoFi progressed to a funded venture; IG later delivered updated Pichia data without apparent inquiry.
- Merck acquired GlycoFi in 2006, acquiring GlycoFi assets including licensed data; IG sued Gerngross for fraud and contract breaches.
- District court granted Gerngross summary judgment on contract; trial found no clear and convincing fraud; Seventh Circuit affirmed.
- IG appealed on contract (publication) and fraud (status misrepresentation).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Publication scope of the 10kb restriction | IG argues publication includes internal disclosures to GlycoFi/Merck | Gerngross argues publication means public disclosure only | Publication means public disclosure; no breach |
| Fraud—misrepresentation of academic status | Gerngross concealed GlycoFi affiliation to obtain a lower price | No clear and convincing proof of material misrepresentation | Fraud not proven by clear and convincing evidence |
| Materiality and price impact of the undisclosed use | Undisclosed commercial use would have raised price | Evidence supports both higher and not necessarily higher price; district court credibility matters | Record supports district court’s finding insufficient proof that price would have been higher |
Key Cases Cited
- Valley Forge Ins. Co. v. Swiderski Elecs., Inc., 223 Ill.2d 352 (Ill. 2006) (publication includes communication to the public; not merely private disclosure)
- Auto-Owners Ins. Co. v. Websolv Computing, Inc., 580 F.3d 543 (7th Cir. 2009) (interpretation of publication in privacy-context insurance cases; not all private communications constitute publication)
- Kim v. Carter's Inc., 598 F.3d 362 (7th Cir. 2010) (contract interpretation; plain meaning in context)
