Pay for delay: The US Supreme Court rules on reverse patent settlements

Both sides are claiming victory following a decision of the United States Supreme Court, in the long running "pay for delay" saga.¹

The Court has ruled that reverse patent settlements, commonly known as "pay for delay" agreements, may be illegal under anti-trust laws, and must be considered from the perspective of both patent law and anti-trust law. Importantly, the Court has indicated that while there may be circumstances in which such arrangements are legal, moving forward, drug companies will need to carefully consider the use of such arrangements.