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Patent Settlements Generally. Broad range of business terms available Accused infringer takes a licenseExclusive/sole licensee v. Non-exclusiveRoyalty-bearing v. royalty-freeMarket entry on a date certain or uninterrupted market presenceOther consideration
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1. An In-House Perspective Avoiding Pitfalls in Settling Pharmaceutical Patent Disputes
Hatch-Waxman Litigation
Patricia Clarke Lukens
Johnson & Johnson
3. Hatch-Waxman Settlements FTC and FDA have a significant post-settlement role, affecting the negotiations although not present at the table
Legal landscape particularly unsettled
Few cases, few bright line rules to follow
4. Hatch-Waxman Settlements Safe Harbor of apportioning remaining patent life
How realistic for a patent with 10 or 15 years to expiration?
Payment of royalty
5. Hatch-Waxman Settlements Something of Value means what exactly?
Reverse cash payment is the obvious case
How to bridge the settlement gap if transferring something of value is prohibited?
6. Hatch-Waxman Settlements Form of Dismissal of Suit
For multiple ANDA suits, admission of validity and infringement
Uncertainty surrounding first filers exclusivity
Uncertainty surrounding any filers approval status
Part of the court order, or in a separate settlement agreement
7. Protecting the Patentees Rights Obtain a written legal opinion that patent is valid and enforceable and the litigation to enforce it (and list it in the Orange Book) was reasonable
Walk-away provisions in settlement agreement
Dismissal/withdrawal of lawsuit without prejudice
Agreement to abandon settlement and reinstate lawsuit upon FTC action
Effect on generic companys approval or exclusivity
Cooperation provisions to address FTC questions
8. Settlement Drivers Complex business decision not a mere proxy for merits of the patent suit
Readiness of next generation products
Readiness on authorized generic
Avoidance of litigation costs