AN OXFORD genetics company has signed a deal with US computer giant Hewlett-Packard which will fund an expensive transatlantic legal battle over the patent for "DNA chips".

Oxford Gene Technology, jointly owned by Prof Ed Southern and Oxford University, has reproduced genetic sequences in an array on glass surfaces.

Like a silicon chip, it carries miniaturised information, but the DNA chip tells researchers which genes are in specific cells or tissues and helps in the hunt for new drugs.

Oxford Gene Technology's patents have generated £1m in licence fees to start the new company, but it has been involved in a long legal battle with US rival Assymetrix about the validity of the patents.

Now the British company has been backed by Hewlett-Packard subsidiary Agilent Technologies, which is paying OGT a "substantial" sum in licence fees. This will fund the legal action, due to start in London in February.

Agilent is investing an estimated $50m to mass-produce the chips using inkjet printers.

Another US company, Incyte Pharmaceuticals, has entered a joint licensing agreement with Oxford Gene Technology.

Prof Southern said: "It would be a catastrophe not to make full use of such a powerful analytical tool."

The company's chief executive Dr Andrew Millar, 45, is former director of clinical research at Oxford-based British Biotech, said: "The Agilent deal was vital to sustain the litigation. They believe we have a very strong case."

Story date: Tuesday 21 December

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