Ancestry.comDNA to pay $12.5m in settlement

OraSure Technologies, Inc. announced the settlement of litigation for patent infringement and breach of contract filed by its subsidiary DNA Genotek, Inc. against Ancestry.comDNA LLC and Spectrum Solutions LLC, Ancestry’s contract manufacturer.

OraSure said under a settlement and license agreement, Ancestry agreed to pay DNA Genotek a settlement fee of $12.5 million.

In addition, DNA Genotek has granted Ancestry a royalty-bearing, non-exclusive, worldwide license to certain patents and patent applications related to the collection of DNA in human saliva.

“The license granted to Ancestry is limited to saliva DNA collection kits sold or used as part of Ancestry’s genetic testing service offerings and does not cover the sale or use of product outside of Ancestry’s business,” said OraSure.

“The settlement and license agreement also provides DNA Genotek with a royalty-free, non-exclusive license to patents related to Ancestry’s existing saliva DNA collection kit and certain modifications thereto.”

OraSure said the parties have each agreed to a mutual release of claims and other provisions typical for settlement agreements of this type.

It said the agreement provides for the dismissal of pending federal lawsuits in the District of Delaware and the Southern District of California and for the parties to jointly seek termination of Inter Partes Review proceedings before the US Patent and Trademark Office involving the DNA Genotek patents asserted in the litigation.

“We are pleased to have resolved this litigation,” said OraSure CEO Douglas Michels.

“We are committed to innovation and the creation of new products and solutions for customers in the markets that we serve.

“An important part of this commitment is the protection of our technology and products and we will remain vigilant in seeking to enforce our intellectual property rights where needed.”