Pay-For-Delay Deals Can Be Illegal, Justices Rule

Law360, New York (June 17, 2013, 10:48 AM EDT) -- The U.S. Supreme Court on Monday ruled that patent law doesn't shield so-called pay-for-delay deals from antitrust scrutiny, paving the way for the Federal Trade Commission to target pharmaceutical companies over the patent settlements.

The justices ruled 5-3 that there was good reason to believe that an unusual settlement situation in which a branded drug company, the plaintiff, pays a generic manufacturer, the defendant, a large sum of money to delay market entry might be anti-competitive. As a result, courts should use the rule of reason...
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