Decrease in problematic pay-for-delay patent settlements in the EU, says Commission

The European Commission's second monitoring exercise of patent settlements in the pharmaceutical sector shows a continuing decline of settlements potentially problematic under European Union antitrust rules.

This highlights an increased awareness of originator and generic companies of which types of settlements can give rise to antitrust scrutiny – generally the so-called pay-for-delay settlements - and is good news for consumers who will benefit from cheaper pharmaceuticals, the Commission said. The number of patent settlements increased in 2010, however, showing that the Commission's vigilance does not prevent firms from settling disputes successfully within the boundaries of the EU rules.