Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Thursday, October 4, 2018

Inference or Evidence? The Uncertain Fate of Patent Settlement Agreements

Avantika Chowdhury and Helen Jenkins ask Inference or Evidence? The Uncertain Fate of Patent Settlement Agreements  .

ABSTRACT:  On 8 March 2018, the UK Competition Appeal Tribunal (CAT) issued an initial judgment on the Paroxetine case involving patent settlement agreements between pharmaceutical firms. The CAT referred a number of questions to the Court of Justice of the European Union (CJEU) including whether a patent settlement with a large value transfer from the originator firm to the generic firm infringes Article 101 TFEU by object. This article discusses whether infringement can be inferred from the size of value transfers, and drawing on the economic literature, shows that such an inference is not always valid.

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