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Date
Rule
801.2
Staff
Michael Verne
Response/Comments
This is still an exclusive license for HSR purposes. K Walsh concurs.

Question

From:

(redacted)

Sent:

Monday, August 25, 2008 10:46 AM

To:

Verne, B. Michael

Subject:

CONFIDENTIAL --HSR reportability regarding an IP license

Mike,

I would appreciateyour guidance on a question regarding HSR reportability with respect to acquisitionof an IP license relating to an active pharmaceutical ingredient("API"). The proposed license from patent holder A would grantexclusive right to company B manufacture the API and exclusive right to sellthe API in the US. Licensor A would retain rights to promote and also the rightto develop the API under the patent (which development right I understand tomean that licensor A is responsible for seeing the pharmaceutical productthrough FDA approval). Would retention by A of co-promotion rights anddevelopment rights in the US be sufficient to render the license non-exclusivefor HSR reporting purposes? Or does the question of license exclusivity reallycome down to whether there has been an exclusive grant of manufacturing rightswithin the territory?

Informal opinionsI have seen which discuss retention of rights by the licensor to co-promotealso appear to involve the licensor's retention of some manufacturing rights(which is not the case here, at least not within the US territory). See, e.g.,

http://www.ftc.gov/bc/hsr/informal/opinions/0601012.htm

http://www.ftc.gov/bc/hsr/informal/opinions/0709013.htm

Your prompt advicewould be greatly appreciated. Please feel free to call me at the number belowif it would make sense to discuss.

Many thanks,

About Informal Interpretations

Informal interpretations provide guidance from previous staff interpretations on the applicability of the HSR rules to specific fact situations. You should not rely on them as a substitute for reading the Act and the Rules themselves. These materials do not, and are not intended to, constitute legal advice.

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