Kristopher Hult published a chapter in the Elgar Encyclopedia on the Economics of Competition, Regulation and Antitrust titled “Pay for delay patent cases.”
Abstract:
Pay-for-delay agreements have been a contentious issue in antitrust law as they have the potential to reduce competition and raise pharmaceutical prices. The FTC has actively fought against these agreements, with varying success in court. The use of pay-for-delay agreements has fluctuated as courts changed their stance on their legality. Calculating the costs and benefits of such settlements can be challenging, as the impact on delaying generic entry depends on various factors, including the settlement duration, the likelihood of a successful challenge, and the potential impact on innovation. While the Supreme Court allows for more antitrust scrutiny of these agreements, evaluating the specific factors involved in each settlement is crucial to understanding its overall impact.
