Court rules for Lilly in patent fight with Ariad

WASHINGTON, April 3 (Reuters) - Eli Lilly (LLY.N) did not infringe a patent owned by Ariad Pharmaceuticals (ARIA.O) when it made its Evista osteoporosis drug and Xigris sepsis treatment, a U.S. appeals court said on Friday.

The U.S. Court of Appeals for the Federal Circuit ruled that a Massachusetts jury had erred in deciding that Eli Lilly infringed on an Ariad patent in making its drugs.

The appeals court found that the four patent claims used to support the finding of infringement were invalid. A patent claim is a phrase that describes a portion of the invention.

Evista is one of Eli Lilly's biggest drugs, used to prevent osteoporosis.

Xigris, a less important product, is used to treat sepsis, where organs fail due to the shock of bloodstream infections. (Reporting by Diane Bartz; Editing by Lisa Von Ahn)