Settlement Agreements: The European Perspective

Key points. This note provides a brief consideration of pasttreatment of settlement agreements in Europe and a considerationof the underlying rationale for scrutinizing such agreementsunder EC competition law. It suggests that a reason for lessfocus by the authorities in Europe than in the US is the generalinterest of the parties in keeping the details of such agreementsconfidential, combined with a lack of any obligation to notifythe authorities. Practical significance. Companies should be reminded of thepossible application of the EC rules to patent settlement agreementsat a time when the Commission has shown a renewed willingnessto review conduct relating to IP and when national authoritiessuch as the OFT have reiterated a willingness to get to gripswith conduct that delays generic entry.