|Reverse Payment Controversy: Interaction between Competition Law and Patent Law|
|Generic Drug, Reverse Payment, Pay for Delay, Rule of
Reason, Presumptively Illegal
|In Europe and in the United States, the reverse payment settlements reached
between pharmaceutical manufacturers have been heard over and over again. Reverse
payment settlement refers to the payment made to the generic drug manufacturers
in exchange for delaying generic drug’s entrance into market. Interestingly,
Europe and the United States provide different answers as to construing the reverse
payment settlement as a matter presumptively illegal or as a matter to be judged
based on rule of reason when it comes to ruling whether or not a reverse payment
settlement is in violation of anti-competition law. In recent years, EU Commission
ruled most cases related to reverse payment settlement presumptively illegal. In
2013, however, the Supreme Court of the United States used rule of reason in Actavis.
Both of them concurrently abandoned the “Scope of the Patent” test. With the
discussions stated above, this paper focused on the difference between Europe and the United States regarding reverse payment settlements for the reference of Taiwan.