FTC v. Actavis, Inc. | |
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Argued March 25, 2013 Decided June 17, 2013 | |
Full case name | Federal Trade Commission v. Actavis, Inc., et al. |
Docket no. | 12-416 |
Citations | 570 U.S. 136 (more) |
Argument | Oral argument |
Opinion announcement | Opinion announcement |
Case history | |
Prior | Injunction denied, In re Androgel Antitrust Lit., 687 F. Supp. 2d 1371 (N.D. Ga. 2010); affirmed, complaint dismissed, FTC v. Watson Pharmaceuticals, Inc., 677 F.3d 1298 (11th Cir. 2012); cert. granted, 568 U.S. 1066 (2012). |
Holding | |
Reverse payment settlements of patent litigations are not immune from antitrust liability. Eleventh Circuit reversed and remanded. | |
Court membership | |
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Case opinions | |
Majority | Breyer, joined by Kennedy, Ginsburg, Sotomayor, Kagan |
Dissent | Roberts, joined by Scalia, Thomas |
Alito took no part in the consideration or decision of the case. | |
Laws applied | |
Sherman Act; Hatch-Waxman Act |
FTC v. Actavis, Inc., 570 U.S. 136 (2013), was a United States Supreme Court decision in which the Court held that the FTC could make an antitrust challenge under the rule of reason against a so-called pay-for-delay agreement, also referred to as a reverse payment patent settlement. Such an agreement is one in which a drug patentee pays another company, ordinarily a generic drug manufacturer, to stay out of the market, thus avoiding generic competition and a challenge to patent validity. The FTC sought to establish a rule that such agreements were presumptively illegal, but the Court ruled only that the FTC could bring a case under more general antitrust principles permitting a defendant to assert justifications for its actions under the rule of reason.[1]