The US FTC reaches record $1.2 billion proposed “pay for delay” settlement and injunctive relief restricting future similar settlements of patent infringement cases (Cephalon)

Federal Trade Commission Reaches Record $1.2 Billion Proposed “Pay for Delay” Settlement with Cephalon and Injunctive Relief Restricting Future Similar Settlements of Patent Infringement Cases* Last week, on the eve of trial, the Federal Trade Commission (“FTC”) reached a proposed settlement in its civil antitrust lawsuit against Cephalon, Inc. (“Cephalon”). The FTC challenged Cephalon’s prior settlement of patent infringement litigation brought against generic drug makers seeking to enter the market with a copy of Cephalon’s blockbuster sleep-disorder drug Provigil. The long-running antitrust case began in 2008 when the FTC sued Cephalon, arguing that there was no rational economic basis for Cephalon’s simultaneous settlement of its patent infringement case and entry into separate business

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Eric S. Hochstadt, Albert F. Cahn, The US FTC reaches record $1.2 billion proposed “pay for delay” settlement and injunctive relief restricting future similar settlements of patent infringement cases (Cephalon), 28 May 2015, e-Competitions Bulletin May 2015, Art. N° 73852

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