The U.S. government has petitioned the U.S. Court of Federal Claims to dismiss significant portions of a patent infringement lawsuit filed by Arbutus Biopharma concerning Moderna’s COVID-19 vaccine. The government contends that the court lacks jurisdiction over much of the case due to a substantial consent judgment between Arbutus and Moderna, which is currently under appeal.
In March 2026, Moderna agreed to a settlement with Arbutus Biopharma and Genevant Sciences, resolving all global litigation related to its COVID-19 vaccine. The settlement included an upfront payment of $950 million, with an additional $1.3 billion contingent upon the outcome of an appellate ruling regarding the applicability of 28 U.S.C. § 1498. This statute pertains to government contractor immunity from patent infringement claims. Moderna has consented to a judgment of infringement and no invalidity of four Arbutus/Genevant patents. Additionally, Genevant granted Moderna a global non-exclusive license to its lipid nanoparticle (LNP) delivery technology for infectious disease applications. ([investor.arbutusbio.com](https://investor.arbutusbio.com/news-releases/news-release-details/genevant-sciences-and-arbutus-biopharma-announce-225-billion?utm_source=openai))
The federal government’s motion to dismiss is based on the argument that the consent judgment between Arbutus and Moderna, which is subject to appeal, precludes the Court of Federal Claims from hearing the bulk of the case. The government asserts that the court lacks jurisdiction over the claims due to the existing settlement and ongoing appellate proceedings.
This development underscores the complex interplay between private settlements and government involvement in patent litigation, particularly in cases involving products developed under government contracts. The outcome of the appellate ruling on the applicability of Section 1498 will have significant implications for the resolution of this dispute and the broader landscape of patent enforcement in the context of government-contracted products.