The FTC’s War On 'Pay-For-Delay' Agreements

Law360, New York (June 21, 2011, 5:42 PM EDT) -- “Pay-for-delay” agreements or “reverse payment settlements” are agreements in which a branded drug company pays its potential competitor to abandon a patent challenge and delay offering a generic version. According to the Federal Trade Commission, “the number of patent settlements that included both compensation to the generic and a restriction on entry increased 60 percent, from 19 in FY 2009 to 31 in FY 2010.”

Pay-for-delay agreements, according to the FTC, harm competition and hurt consumers in the form of higher prices. Specifically, and as reported...
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