U.S., France Settle AIDS Test Dispute : 2 Groups to Share Patent, Give 80% to Research Foundation

The United States and France today jointly announced an agreement to settle a longstanding legal dispute over patent rights to AIDS screening tests.

President Reagan and French Premier Jacques Chirac, who is in the United States on his first official visit, announced an end to the dispute and pledged closer future cooperation.

The dispute has soured relations between U.S. and French researchers.

The agreement, between the U.S. Department of Health and Human Services and the Pasteur Institute in Paris, settles a lawsuit filed by scientists at the institute concerning a patent on an AIDS test developed by U.S. scientists.

‘Will Share Patent’

Announcing the agreement during an appearance with Chirac in the East Room, Reagan said: “The two medical groups will share the patent, and each party will contribute 80% of the royalties received to establish and support an international AIDs research foundation.”

“This foundation, which will also raise private funds, will sponsor AIDS-related research and will donate 25% of the funds it receives to education and research of AIDs problems in less developed countries,” he added.

“This agreement opens a new era in Franco-American cooperation, allowing France and the United States to join their efforts to control this terrible disease in the hopes of speeding the development of an AIDS vaccine or cure,” Reagan concluded.

“I just want to add how glad I am about this agreement to fight against this terrific disease,” Chirac said. “We in the United States and France have very, very good and efficient scientists, and we will now work together and also create a foundation to fight against AIDS. And it is, I think, a great step to be successful in this very important battle.”

Prestige, Money at Stake

At stake in the dispute are scientific prestige and potentially large amounts of money coming from worldwide testing for AIDS virus infection.

On March 6, the U.S. Department of Health and Human Services and Pasteur issued a conciliatory joint statement indicating that an out-of-court agreement was near after months of negotiation.

The statement praised the contributions of both sides and said any settlement “should in no way be interpreted as providing either party an advantage over the other party.”

Pasteur scientists filed a lawsuit against the U.S. government in December, 1985, concerning a patent on an AIDS antibody test developed by Dr. Robert Gallo and his research group at the National Cancer Institute, a unit of the National Institutes of Health.

Detects Antibodies

The test in question detects antibodies to the causal virus, an indication of infection by the agent. It is widely used to screen blood supplies and to identify individuals who might have been exposed to the virus.

The legal action sought to have royalties from the patent held by the government turned over to the French.

The lawsuit contended that the American researchers used materials and information supplied by Pasteur in developing the test, a violation of an agreement that the materials were only to be used for research.