Covid-19 Spotlights Ruling’s Chilling Effect on Diagnostic Tests

The new coronavirus outbreak highlights how a 2012 U.S. Supreme Court decision has discouraged drugmakers from developing new diagnostic tests for diseases like Covid-19—a problem that should be addressed, intellectual property lawyers said.

The decision, Mayo v. Prometheus, has undermined the ability of companies to protect intellectual property related to diagnostic testing, the attorneys said. It’s made some companies—especially smaller biotech companies—wary of pursuing new diagnostics for fear of not being able to patent any discoveries.

While at least two companies are producing tests for the Covid-19 infection for the U.S., some may have been more enthusiastic about ...