Patent Portfolios and Competition Law: Some Reflections After the Recent RPSA Cases

In the pharmaceutical sector, firms often build patent portfolios in order to better protect their innovations, but also to strategically exploit the cluster to prevent entry by generic competition. In fact, once patent protection on the main invention expires, originator firms adopt a two-tiered s...

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Main Author: Emanuela Arezzo
Format: Article
Language:English
Published: Universidade Católica Editora 2023-06-01
Series:Market and Competition Law Review
Subjects:
Online Access:https://revistas.ucp.pt/index.php/mclawreview/article/view/12677
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author Emanuela Arezzo
author_facet Emanuela Arezzo
author_sort Emanuela Arezzo
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description In the pharmaceutical sector, firms often build patent portfolios in order to better protect their innovations, but also to strategically exploit the cluster to prevent entry by generic competition. In fact, once patent protection on the main invention expires, originator firms adopt a two-tiered strategy, centred on the enforcement of secondary patents composing the portfolios. At first, originators threaten generic companies of patent infringement, in a way to discourage entry by generic companies. Secondly, they push generics to enter a patent settlement (in order to compose the very same infringement proceeding), often paying them to stay out of the market: hence, prolonging their exclusivity time, to the detriment of consumers and society at large. While EU institutions have made clear that the latter behaviour is in plain contrast with competition law provisions prohibiting agreements in restraint of trade, RPSAs are only the tail of a multifaceted conduct which deserves closer scrutiny.
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spelling doaj-art-1a50ef223e9c4d999cf6140c435530102025-01-03T01:41:37ZengUniversidade Católica EditoraMarket and Competition Law Review2184-00082023-06-017110.34632/mclawreview.2023.12677Patent Portfolios and Competition Law: Some Reflections After the Recent RPSA CasesEmanuela Arezzo0Università degli Studi di Teramo Facoltà di Giurisprudenza In the pharmaceutical sector, firms often build patent portfolios in order to better protect their innovations, but also to strategically exploit the cluster to prevent entry by generic competition. In fact, once patent protection on the main invention expires, originator firms adopt a two-tiered strategy, centred on the enforcement of secondary patents composing the portfolios. At first, originators threaten generic companies of patent infringement, in a way to discourage entry by generic companies. Secondly, they push generics to enter a patent settlement (in order to compose the very same infringement proceeding), often paying them to stay out of the market: hence, prolonging their exclusivity time, to the detriment of consumers and society at large. While EU institutions have made clear that the latter behaviour is in plain contrast with competition law provisions prohibiting agreements in restraint of trade, RPSAs are only the tail of a multifaceted conduct which deserves closer scrutiny. https://revistas.ucp.pt/index.php/mclawreview/article/view/12677competitionpatentpatent portfoliosreverse payment settlement agreementshamvexatious litigation
spellingShingle Emanuela Arezzo
Patent Portfolios and Competition Law: Some Reflections After the Recent RPSA Cases
Market and Competition Law Review
competition
patent
patent portfolios
reverse payment settlement agreement
sham
vexatious litigation
title Patent Portfolios and Competition Law: Some Reflections After the Recent RPSA Cases
title_full Patent Portfolios and Competition Law: Some Reflections After the Recent RPSA Cases
title_fullStr Patent Portfolios and Competition Law: Some Reflections After the Recent RPSA Cases
title_full_unstemmed Patent Portfolios and Competition Law: Some Reflections After the Recent RPSA Cases
title_short Patent Portfolios and Competition Law: Some Reflections After the Recent RPSA Cases
title_sort patent portfolios and competition law some reflections after the recent rpsa cases
topic competition
patent
patent portfolios
reverse payment settlement agreement
sham
vexatious litigation
url https://revistas.ucp.pt/index.php/mclawreview/article/view/12677
work_keys_str_mv AT emanuelaarezzo patentportfoliosandcompetitionlawsomereflectionsaftertherecentrpsacases