University of Pennsylvania sues BioNTech over unpaid vaccine royalties

According to Reuters, the University of Pennsylvania has initiated legal action against the German biotechnology firm BioNTech in a federal court in Pennsylvania. The university accuses BioNTech of under-reporting licensing fees for patents related to its technology used in COVID-19 vaccines.

The lawsuit alleges that BioNTech owes the university a larger share of global vaccine sales. Reuters reports that this is based on a method developed by University of Pennsylvania professors and Nobel Prize laureates Katalin Kariko and Drew Weissman.

Reuters notes that BioNTech has not yet commented on the lawsuit. A university spokesperson stated that the institution is "seeking full royalty payments under patent licensing agreements that enabled BioNTech to develop its marketed COVID vaccine".

"The lawsuit said that BioNTech has only been paying royalties for shots "sold into" countries where the school owns a patent, but owes royalties for all vaccines "made" in countries where Penn has patents under their contract," reports Reuters.

The university has requested that the court grant monetary compensation and issue an order compelling BioNTech to adhere to the agreement.

Last year, the European Commission reached an accord with BioNTech/Pfizer concerning COVID-19 vaccines. This agreement includes provisions for reducing delivery quantities and extending the timeframe in which EU member states can receive supplies.