Impact of Reverse Exclusionary Settlements on Consumer Welfare: A Law and Economic Analysis
Deloitte Touche Tohmatsu - National Office - New York
affiliation not provided to SSRN
August 2, 2010
American Bar Association's Antitrust Health Care Chronicle, Vol. 23, No. 4, July 2010
The purpose of this article is to propose a more accurate methodology and valuation as to the consumer welfare effect of reverse exclusionary settlements in the context of patent litigation cases between brand and generic pharmaceutical firms. In contrast to the FTC Findings that reverse exclusionary settlements will cost consumers $3.5 billion per year, our counter-analysis suggests that the costs to consumers are significantly less than what the FTC has estimated. Therefore, the dis-allowance of all reverse exclusionary settlements arguably is too restrictive a standard and may have unfavorable competitive consequences for consumers, as well as brand and generic pharmaceutical firms.
Number of Pages in PDF File: 11
Keywords: reverse settlements, reverse exclusionary settlements, patent infringement, law and economics, pay-for-delay, pay for delay, deferred settlements, FTC
JEL Classification: k2, l4, l5Accepted Paper Series
Date posted: August 6, 2010 ; Last revised: May 19, 2012
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