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An appeals court says a law prohibiting payment for donated organs did not apply to stem cells extracted from circulating blood.

A federal appeals court ruling on Thursday could make it easier for patients with diseases like leukemia to find matching bone marrow donors.

The Court of Appeals for the Ninth Circuit said that a federal law prohibiting payment for donated organs did not apply to stem cells extracted from circulating blood.

“The statute does not prohibit compensation for donations of blood and the substances in it, which include peripheral blood stem cells,” Judge Andrew J. Kleinfeld wrote for a unanimous three-judge panel.

The lawsuit was brought against the federal government by a coalition that included patients seeking bone marrow transplants and MoreMarrowDonors.org, a nonprofit group that wants to offer donors $3,000 in scholarships, housing allowances or gifts to charities.

“Every year, nearly 3,000 Americans die because they cannot find a matching bone marrow donor,” Jeff Rowes, a lawyer at the Institute for Justice, which represented the plaintiffs, said. “Today’s decision will put a stop to this irrational prohibition...