There have been recent news articles about settlement agreements reached in patent litigation cases called “Pay-for-Delay”.
“Pay-for-delay” deals are agreements between generic and patent-holding pharmaceutical companies, where the patent-holding drug maker compensates the generic manufacturer if the generic manufacturer agrees to refrain from marketing the generic version of a drug past the expiration of the drug’s patent.
“One of the FTC’s top priorities in recent years has been to oppose a costly legal tactic that more and more branded drug manufacturers have been using to stifle competition from lower-cost generic medicines. These drug makers have been able to sidestep competition by offering patent settlements that pay generic companies not to bring lower-cost alternatives to market. These “pay-for-delay” patent settlements effectively block all other generic drug competition for a growing number of branded drugs. According to an FTC study, these anticompetitive deals cost consumers and taxpayers $3.5 billion in higher drug costs every year. Since 2001, the FTC has filed a number of lawsuits to stop these deals, and it supports legislation to end such “pay-for-delay” settlements”.
source: https://lawreview.law.miami.edu › pharmaceutical-pay-f..