Patent Settlement Agreements

Wed Aug 06 16:24:38 EDT 2008
By Dr. Sumanth Addanki and Dr. Alan J. Daskin (Jeff)

Various commentators have argued that while agreements in settlement of patent litigation are generally procompetitive, they harm consumers if they include so-called "reverse payments" from the incumbent patentee to the would-be entrant. Therefore, they suggest, settlements that include reverse payments should be condemned. In this chapter from Issues in Competition Law and Policy, NERA Senior Vice President Dr. Sumanth Addanki and Vice President Dr. Alan J. Daskin (Jeff) show that this proposed filter is not particularly useful: in fact, settlement agreements that include such terms are not necessarily anticompetitive. Moreover, seemingly innocuous agreements that exclude such terms may well turn out to be anticompetitive and to harm consumers.

This chapter, from Issues in Competition Law and Policy, has been reproduced with permission from the American Bar Association. All rights reserved. This information or any portion thereof may not be copied or disseminated in any form or by any means or downloaded or stored in an electronic database or retrieval system without the express written consent of the American Bar Association.