Exclusion payments in patent settlements: a legal and economic perspective

Legal context. The application of antitrust law to assess settlementsof patent litigation raises difficult issues concerning theappropriate balance of patent law and competition policy. Recentprivate and public invocations of US antitrust law to challengesettlement agreements covering pharmaceutical patents have broughtthese issues to the forefront. The agreements share the commonfeature of an ‘exclusion payment’ from a brand-namedrug manufacturer (the patentee) to a generic drug manufacturer(the accused infringer) in exchange for a promise by the genericcompany to refrain from marketing its product for some time.US federal courts that have examined these agreements have variedin their approach and conclusions regarding the appropriateantitrust analysis to be applied to these settlements. Key points. This article argues that informed antitrust analysisof such agreements must take due note of the ‘probabilistic’nature of patent property rights. Practical significance. The article concludes that exclusionpayments fall outside the scope of a patent's exclusionary scopeand thus are subject to antitrust scrutiny. It demonstratesthat barring anticompetitive exclusion payments in settlementnegotiation prevents collusive bargains that harm consumer welfarewithout discouraging efficient settlements.     

Can you maintain a patent as granted after seeking maintenance of the patent in a more limited form?

This case concerns whether an appellant-patentee from a decisionof the Opposition Division can, before the Board of Appeal,have as a Main Request the maintenance of the patent as grantedeven though the Main Request before the Opposition Divisionwas for the claims in a more limited form.     

专利权质押贷款风险之化解——兼评相关地方新出台的专利权质押贷款管理办法

专利权质押贷款存在着专利权被宣告无效、专利权评估不准确、专利权实现、丧失专利权、被宣告破产等诸多风险。去年以来,我国一些地方政府出台的有关专利权质押贷款管理的相关规定,试图通过立法化解风险,但对借款人、专利权人所面临风险普遍关注不够,使得借款人和专利权人在现有专利权质押贷款制度下面临的风险增大。有必要通过“接管”借款企业、建立化解专利权质押贷款风险的风险补偿金制度以及重新确定政府在专利权质押贷款中的职责等措施,真正化解专利权质押贷款风险。     

On meaningful questions: a two-trace transfer problem

This paper describes a solution to the problem of interpreting scientific evidence in the case where a control sample from a single suspect is found to be of the same type as one of two items of trace evidence at a crime scene. While such problems have been mentioned in the literature it appears that the interpretation derived here is novel. The solution is intuitively reasonable but it gives rise to a corollary which is counter-intuitive. For illustrative purposes the discussion is based on blood evidence but the underlying principles apply to all types of transfer evidence.     

For the health of the economy and patent system: rationale and scope of patent attorney privilege

Legal context: There exists, in some countries, a patent attorney privilege.This privilege allows an actual or potential holder of patentrights to withhold from a court communications that it has hadwith its patent attorney. The privilege is not recognized inall jurisdictions and there is variation in the extent of theprivilege in those countries where it does exist. Key points: This article explores the rationale for the privilege in orderto see if there is a sound basis upon which to found it. Througha consideration of the justifications for other legal privileges,the article finds that patent attorney privilege is a justifiableprotection for communications between clients and their patentattorneys. If there was a possibility that the communicationswould have to be revealed in court, this may impact the fulland frank nature of the communications. Such communicationsassist patent attorneys, as professionals with expertise ina specialized field, to provide clients with appropriate andeffective advice. That advice goes directly to the maintenanceand benefit of the patent system and the overall economy. Practical significance: As a result of the variation in the extent of the privilegearound the world, there are moves afoot to reform its operation.This article reveals strong public policy reasons for the recognitionof a patent attorney privilege. These grounds also reinforcethe need to ensure that privilege is not unduly limited in itsoperation in any jurisdiction.     

Vital parameters for patent morality a question of form

Legal context: At the interface between patent law and biotechnology, a debatehas arisen over the application of the morality provision, designedto ensure the future development of society on a principledbasis. This article reviews the provision in its European context,adopting UK and European perspectives for analysis. Key points: Analysis of the provision identifies that there is ambiguityregarding interpretation of the morality provision, which haslead to inconsistent application between the European PatentOffice and the European Patent Boards. This article assessesthe provision in the context of the patent system and offersa legal philosophy framework within which to understand theprovision as conveying: a methodology, a standard of moralityand a source for that standard which can be utilized to describethe possibilities. It then re-centres the debate to its practicalcontext in order to demonstrate that the patent system removesthe options which are inapplicable: advocating valid and achievablemethods for complying with the law both nationally and on aEuropean level. Practical significance: The morality provision has become an accepted ‘wild card’in assessing the patentability of biotechnology: it has cometo rely upon the identification of danger areas in innovationthat may trigger moral objections. This falls far short of thelegal certainty which is so vital to biotechnological growth.In the face of the impending implementation of the unitary patentright across Europe, the importance of achieving a predictableand practical approach to applying the morality cannot be underestimated.     

The patent lottery

A recent study by Boston academic economists James Bessen andMichael Muerer has argued that many patents are simply not worthhaving. Their case is based on the analysis of a large bodyof data. As James Bessen says, in a comment posted in responseto criticism on the IPKat weblog,

"We derived our estimatesof patent rents after reviewing 16 different papers publishedover 25 years, involving 17 different authors and several differentmethodologies.     

Non-metric data: a note on a neglected problem in DEA studies

Data envelopment analysis (DEA) is widely used to compare the empirical performance of public institutions such as law enforcement agencies, judicial authorities or national health care systems. Many DEA analysts, however, ignore the fact that DEA efficiency values are non-metric. They consequently do not hesitate to compute (arithmetic) means. They do not hesitate either to treat DEA values as metric data in econometric analyses. Instead of providing useful insights into the performance of public bodies, the confusion of non-metric data with metric data constitutes a lack of internal validity that may cause serious fallacies. Against this background, we believe that a clear warning against an uncritical processing and interpretation of DEA values is pertinent and should be routinely considered by efficiency analysts as well as referees of efficiency papers.     

The software patent debate

Legal context. This article has practical application for thoseworking in the patent field, particularly with regards to thefiling of software patent applications. Key points. The article provides a detailed explanation of thestate of the art with regards to the legal protection of software,and describes the latest legal developments in the area, includingthe failed Directive on Computer Implemented Inventions andsome recent cases that may shed more light on some of the technicalissues involved in the area of software. The paper also exploressome of the arguments put forward by those in favour and opposedto software patents, in order to ascertain their validity. Practical significance. Existing case law may provide help tosolve the problem of patentability, but it might also be a goodidea to resurrect the idea that there should be a sui-generissoftware right.