Advanced Cell Technology Inc

In 2003, federal officials inspected California-based Advanced Cell Technology. They rummaged through refrigerators, scrutinized labs and checked microscopes to make sure the firm wasn't using federally funded equipment to work on embryonic stem cells. Similar scenes have played out across the U.S. since President Bush issued an executive order banning federally funded research on embryonic stem cells created after 2001.

Geron Corp. and Advanced Cell Technology Inc. agreed to settle a patent dispute over a pioneering cloning technology that led to the creation of Dolly the sheep. Advanced Cell and the University of Massachusetts agreed to end their appeal and give up certain patents for animal cloning technology while keeping rights to a cloning method for human use, Advanced Cell said. Menlo Park, Calif.-based Geron keeps the rights to use the technology in animal cloning.

Advanced Cell Technology Inc., which conducts embryonic stem-cell research, plans to open a laboratory in California because the state supports the work, the company's chief medical officer said Wednesday. California residents will vote in November on an initiative that would guarantee $3 billion in state funding over 10 years for stem-cell research including experiments using material from human embryos. The federal government is spending $24.8 million on embryonic stem-cell research this year.

An appeals panel at the U.S. Patent and Trademark Office ruled in favor of Advanced Cell Technology Inc. and against Infigen Inc. in their ownership fight over three key animal cloning patents. The three patent judges said DeForest, Wis.-based Infigen waited too long to challenge the patents held by Worcester, Mass.-based Advanced Cell. Advanced Cell still faces a significant legal challenge from Menlo Park, Calif.-based Geron Inc., which owns the cloning technology that created Dolly the sheep.