DREW JOHNSON: Moderna Billionaires Still Want More From Taxpayers 

It’s been nearly three years since Americans first rolled up their sleeves to get the jab.For most of us, the coronavirus vaccine was available For free Through insurance or local government immunization programs. But one vaccine maker was making record profits.

Moderna increases peak vaccine sales $18.4 billion 2022 — Increased from $17.7 billion In 2023, the pandemic was almost over, but Moderna’s sales still did not decline. 6.7 billion dollars.

Over a three-year period, Moderna banked more than $42 billion in total from buyers around the world. Not a bad harvest.

But now Moderna is embroiled in a multibillion-dollar scandal. Patent infringement battle Regarding the technology used to develop the vaccine. And believe it or not, the Biden administration intervened in the lawsuit, arguing that if Moderna loses, taxpayers should rightfully pay the damages.

that’s right. If Moderna infringes, taxpayers will pay for it.

Moderna clearly believes the administration’s proposal is inflated. However, this is a complete rip-off on taxpayers and has absolutely no basis in law.

Here’s the backstory:

In December 2020, Moderna announced its mRNA vaccine after receiving emergency use authorization from the FDA. But behind the scenes, there was an unpleasant task: exactly how Moderna was making its vaccine.

Moderna needed a way to transport the vaccine into cells without damaging them. This is where lipid nanoparticle technology (LNP) comes into play. This effectively coats the mRNA molecule with fat, Deliver intact to cells. Without this technology, mRNA vaccines would not work.

However, rather than licensing the LNP technology from its owner, Arbutus, Moderna simply stole the technology It was used in vaccines without permission, in direct opposition to court decisions made before the coronavirus outbreak. Arbutus has since sued Moderna for infringing six patents.

Moderna is doing everything it can to get out of this mess, but things don’t look good.

The company tried to invalidate two of Arbutus’ patents, but the U.S. Patent and Trademark Office deemed them valid. Therefore, the lawsuit is ongoing. And Moderna could end up in the following situation: up to $3 billionAccording to financial research firm Leerink Partners.

Unless, of course, Biden’s Justice Department has its way.

The government is not a party to the lawsuit, but Filed by the Department of Justice The case’s highly unusual “statement of profits” suggests that U.S. taxpayers should be liable for damages if Moderna is found liable for the infringement.

This claim is legally dubious. And it’s pretty weird.

The government’s argument is based on 28 U.S.C. Section 1498. This law was enacted in 1910 and promised Washington: complete patent holder When the government needs to infringe on a patent. This was designed to speed up production during wartime, essentially allowing mass production in times of crisis without having to worry about finalizing the details of licensing agreements in advance. It was intended for that purpose.

This law is clearly Not applicable here. Moderna’s vaccine is do not have Manufactured for government use. They were created for millions of Americans and were obtained in a variety of ways, usually through insurance coverage. And they were manufactured for millions of foreigners at the same time, which is very different from typical military applications. Yes, the government supported vaccine development through Operation Warp Speed ​​and purchased some vaccines directly, but it does not meet the Section 1498 test.

The Justice Department’s logic in this case is that the government could allow generic drug manufacturers to simply copy brand-name drugs that Medicare purchased, and then swoop in and absorb damages for patent infringement. can. If bureaucrats continue down this path, Washington may actively encourage widespread breaches by government vendors. The government bears all the risks, the taxpayers bear the financial burden, and private companies earn all the profits.

A better idea would be to hold Moderna liable for the theft if the court found Moderna to have infringed. Let’s keep the taxpayers out of it.

Drew Johnson is a government watchdog and taxpayer advocate who studies tax, budget, and health policy as an academic at several free market think tanks.he candidate For Congress in Nevada’s 3rd Congressional District.