University professors are in the unique position of being paid to perform basic research without a direct business goal. Not surprisingly, many professors become inventors and, depending on how their research was supported, they often own the patent rights as well.
When Dr. Madey, a professor at Duke and Director of a laser laboratory there, departed, Duke continued to use the Free Electron Laser (FEL) he left behind, even though the FEL included some of his patented technology. Madey sued to stop them and although he lost the first battle he won on appeal.
Dr. John Madey was a tenured research professor at Stanford University where he had an innovative laser research program. Duke recruited Madey, and in 1988 he left Stanford for a position in Duke's physics department. In 1989 Madey moved his free electron laser ("FEL") research lab from Stanford to Duke. The FEL lab contained substantial equipment, requiring Duke to build an addition to its physics building to house the lab. In addition, during his time at Stanford, Madey had obtained sole ownership of two patents used in some of the equipment in the FEL lab.