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The European Union's top court ruled Tuesday that scientists cannot patent stem cell techniques that use human embryos for research, a decision some scientists said could threaten major medical advances if it prevents biotech companies from turning a profit.

The ruling sets Europe apart from much of the rest of the world, where there are no such restrictions, and it arose from a lawsuit filed not by a religious group but by the environmental group Greenpeace.

The decision from the European Court of Justice in Luxembourg centered on the case of a University of Bonn researcher who in 1997 filed a patent on a technique to turn embryonic stem cells into nerve cells. Greenpeace challenged Oliver Bruestle's patent, arguing that it allowed human embryos to be exploited.

The court said patents would be allowed if they involved therapeutic or diagnostic techniques that are useful to the embryo itself, like correcting defects.

But the justices concluded that the law protects human embryos from any use that could undermine their dignity. The court also objected to any stem cell techniques used exclusively...