MorphoSys AG has received a positive "Report and Recommendation" from the Magistrate Judge to the District Judge for the District Court in Boston, Massachusetts, USA, in the legal action filed by Applied Molecular Evolution against MorphoSys AG and MorphoSys USA Inc. The Magistrate Judge recommended that MorphoSys' motion for summary judgment of non-infringement be allowed and that AME's motion for partial summary judgment of infringement be denied.

On June 25, 2001, AME filed a complaint against MorphoSys AG and its wholly owned subsidiary MorphoSys USA, Inc., in the United States District Court for the District of Massachusetts seeking injunctive relief and damages on behalf of AME. The complaint alleges that MorphoSys AG and MorphoSys USA Inc, are willfully infringing the Kauffman patent family under which AME holds an exclusive license.

MorphoSys counterclaimed that the patents are not infringed, and that the patents are invalid and/or unenforceable. In summer 2002, both parties filed motions for summary judgment. The Magistrate Judge's Report and Recommendation now goes to the District Judge for final adoption. If the District Judge adopts the recommendation of the Magistrate Judge that MorphoSys is not infringing the Kauffman patents, all of AME's claims will be fully resolved in favor of MorphoSys.