Moderna Faces Appeal Over COVID Vaccine Patent Claims

A Federal Circuit panel heard arguments on whether Moderna can shield itself from patent claims by Arbutus and Genevant over its COVID-19 vaccine.

Updated on Nov. 5, 2026 in COVID-19

Moderna Faces Appeal Over COVID Vaccine Patent Claims

Live Poll

Should drug companies be shielded from patent lawsuits over government-ordered vaccines?

Arbutus and Genevant sued Moderna in 2022 over royalties on its COVID-19 vaccine Spikevax, and a Federal Circuit panel heard Moderna's appeal of a lower-court rejection of its government-supplier defense. The dispute would have been the first COVID vaccine patent case to go to trial.

Why it matters

Moderna argues the United States should have been the defendant because it made the vaccine for the federal government under Operation Warp Speed, and a ruling could shape how liability is allocated for vaccines produced under government contracts. A Department of Justice attorney warned that a ruling against Moderna would be devastating to the government's contracting efforts.

The settlement terms tie $1.3 billion in additional payments to the appeal outcome, after Moderna already paid $950 million in July. The Federal Circuit has not yet issued a decision on the defense that a district judge largely rejected in February.

The players

Moderna

Moderna is a biotechnology company that developed the Spikevax COVID-19 vaccine.

Arbutus Biopharma

Arbutus Biopharma is a biopharmaceutical company that sued Moderna over patent royalties on its COVID-19 vaccine.

Genevant Sciences

Genevant Sciences is a drug delivery company that co-brought the patent infringement suit against Moderna alongside Arbutus.

Joshua Wolson

Joshua Wolson is a U.S. District Judge in Delaware who rejected Moderna's government-supplier defense in February.

The details

Judge Joshua Wolson rejected Moderna's defense in February, and the companies reached a settlement in March that required Moderna to make a $950 million payment in July. The appeal centers on a World War One-era law that shields patent claims that would interfere with supplying war materials, which Moderna invokes in its defense.

February 2026: District Judge Joshua Wolson mostly rejected Moderna's government-supplier defense.
March 2026: Moderna and Arbutus/Genevant reached a settlement.
July 2026: Moderna paid $950 million to Arbutus and Genevant.
November 5, 2026: The Federal Circuit heard oral arguments on Moderna's defense.

Health Landscape

The dispute tests whether Operation Warp Speed contracts carry government liability protections that a World War One-era patent law might extend to COVID vaccine makers. How the Federal Circuit resolves it could set the terms for future pandemic-era vaccine partnerships with the federal government.

The outcome could affect whether vaccine makers face patent royalty claims tied to government-contracted production, which may influence the cost structure of future vaccine supply. The result would not change how COVID-19 vaccines are currently taken or accessed by patients.

The takeaway

Patent disputes over government-funded vaccines can carry financial exposure long after a product reaches the public. Readers following pandemic-era drug costs should watch how the Federal Circuit rules on whether government contracts shield manufacturers from such claims.