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Last summer, the Supreme Court held that so-called “pay for delay” settlements of pharmaceutical patent litigation, in which the branded company pays the allegedly infringing generic firm to “delay” its entry into the market, are subject to scrutiny under the antitrust laws. These “reverse payments,” in which the money flows from the patentee to the alleged infringer, might induce the generic firm to agree to abandon its challenge to the patent’s validity and accept a license with a later entry date than it would have absent the payment.

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