A federal judge in Delaware rejected Moderna’s argument that a U.S. government license stemming from federally funded research shielded the company from patent infringement claims involving its COVID-19 vaccine technology. The judge ruled that the law does not provide this defense to a non-government company like Moderna.

The decision is a setback for Moderna, but it does not resolve the case. Filed by Northwestern University in 2024, the lawsuit alleges that Moderna used the university’s patented lipid nanoparticle (LNP) technology in its vaccines without authorization. The case will proceed without one of Moderna’s primary defenses, with the remaining arguments and the core question of patent infringement still to be considered.