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Fenn v. Yale University

Citation: 184 F. App'x 21Docket: No. 05-2663-cv

Court: Court of Appeals for the Second Circuit; May 18, 2006; Federal Appellate Court

Narrative Opinion Summary

This case involves an appellate review of a District Court decision concerning the ownership of a patent developed by a faculty member at a university. The university's policy mandates that inventions created by faculty members are owned by the institution, with shared royalties. The faculty member was found to have breached this policy and committed fraud by failing to disclose the invention's significance and patenting it independently. The court also determined that these actions constituted civil theft, thus ordering the assignment of the patent to the university. On appeal, the faculty member argued that the National Institutes of Health (NIH) had determined his ownership under the Bayh-Dole Act. However, the court found no evidence supporting this claim, noting that the NIH's actions did not imply a transfer of rights. The appellate court upheld the District Court's decision, finding no clear error in its conclusions and reinforcing that the NIH's conduct was consistent with the Bayh-Dole Act. As a result, the judgment in favor of the university was affirmed, and the faculty member's arguments were dismissed as lacking merit.

Legal Issues Addressed

Bayh-Dole Act and Patent Ownership

Application: The court ruled against the appellant's claim that the NIH determined him to be the rightful owner under the Bayh-Dole Act.

Reasoning: The District Court found no such determination by the NIH, stating that Fenn's evidence—a letter dated March 25, 1993, with a licensing form—did not support his claims.

Breach of Fiduciary Duty

Application: The court found that the appellant breached fiduciary duties by failing to disclose the significance of his invention to the university.

Reasoning: The District Court determined that Fenn breached this policy by not disclosing his invention's significance to Yale and patenting it under his own name, leading to a finding of fraud and breach of fiduciary duties.

Civil Theft in Patent Assignment

Application: The court concluded that the appellant's actions constituted civil theft, necessitating the assignment of the patent to the university.

Reasoning: The court further concluded that Fenn's actions amounted to civil theft and ordered him to assign the patent to Yale.

Patent Ownership and University Policy

Application: The court applied Yale University's policy that inventions by faculty are owned by the university, finding that the faculty member breached this policy.

Reasoning: Yale's patent policy stipulates that inventions by faculty are owned by Yale, with shared licensing royalties.

Standard of Review for District Court Findings

Application: The appellate court affirmed the District Court's findings, which were not clearly erroneous.

Reasoning: The District Court's findings were upheld as not clearly erroneous, emphasizing that the NIH's actions were in line with the Bayh-Dole Act's requirements.