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ARTICLE · 04 OCTOBER 2006

Agreement To Assign Patents Subject To Act

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The Federal Court of Appeal unanimously held that an assignment of a patent may constitute an agreement or arrangement which results in an undue lessening of competition contrary to s. 45 of the Competition Act.

CanadaIntellectual Property
Christopher Margison
Christopher Margison
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The Federal Court of Appeal unanimously held that an assignment of a patent may constitute an agreement or arrangement which results in an undue lessening of competition contrary to s. 45 of the Competition Act.

In June, 1997, Eli Lilly and Company and Eli Lilly Canada Inc. (collectively, "Lilly") filed a statement of claim alleging that Apotex Inc. ("Apotex") had infringed several of its patents, including four patents that had previously been assigned to it by Shionogi & Co. Ltd. ("Shionogi") (the "Shionogi Patents"). Each of the Shionogi Patents described and claimed processes suitable for making intermediates which could be converted to the antibiotic, cefaclor, using other non-infringing processes.

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