American Sales Co., et al., Plaintiffs-Appellants, v. Warner-Chilcott Co., LLC, et al., Defendants-Appellees

Brief of the Federal Trade Commission As Amicus Curiae In Support of Plaintiffs-Appellants before the U.S. Court of Appeals for the First Circuit addressing the applicability of the rule of reason under the antitrust laws to patent litigation settlements.  The brief points out that in FTC v. Actavis, 133 S.Ct. 2223 (2013), the Supreme Court reaffirmed that traditional antitrust principles apply to patent litigation settlements -- and that patent law confers no broad immunity on parties to such settlements -- and held that a brand-name drug manufacturer’s payment to a generic competitor can violate the antitrust laws under the rule of reason.  The brief states that that holding does not depend on the specific form of the compensation which the brand company pays the generic to stay out of the market.