Posted by Social Science Research Network
Brief of Amici Curiae 49 Professors in Support of Petitioners – Michael A. Carrier (Rutgers University School of Law – Camden) and Judith Zahid (Zelle Hofmann Voelbel & Mason LLP)
ABSTRACT: In FTC v. Actavis, the U.S. Supreme Court held that a brand-name drug company’s payment to a generic firm to delay entering the market could violate the antitrust laws. What does that mean for the earlier opinion of the California Court of Appeal in the “Cipro” case that had upheld Bayer’s payment of $398 million to generics? This amicus brief, filed in the California Supreme Court on behalf of 49 Professors, answers that question in three steps.
The first explains how the Actavis ruling knocked out each of the six pillars that had supported the California Court of Appeal’s decision. These pillars were based on (1) exclusion payments’ supposed lack of anticompetitive effects, (2) the toothless “scope of the patent” test, (3) a dispositive public policy favoring settlement, (4) the public policy (or at least one strand) underlying patent law, (5) the alleged need for exclusion payments to attain settlements, and (6) the “natural” status of exclusion payments.
The second step concludes, based on the Cartwright Act, section 16600 of the Business and Professions Code, and the Unfair Competition Act, that California law reaches beyond federal law in its emphasis on consumer welfare and condemnation of trusts.
And the third explains that preemption doctrine does not prevent California courts from rigorously analyzing settlements like the one in this case.
Featured News
Redfin Settles $9.2M Commission Inflation Lawsuits
May 7, 2024 by
CPI
DOJ Supports Colorado’s Efforts to Block Kroger-Albertsons Merger
May 7, 2024 by
CPI
Japan Considers Regulation of AI Developers
May 7, 2024 by
CPI
European Commission Extends Decision Deadline for Ita-Lufthansa Merger
May 7, 2024 by
CPI
UK, US and Australia Sanction Senior Leader of LockBit Cybercrime Gang
May 7, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI