California's Pay-For-Delay Law May Be Harsher Than FTC Regulation, Could Face Legal Challenge

Governor Newsom signs bill that presumes brand-generic patent settlements are anticompetitive; AAM says the law violates US Constitution by attempting to regulate transactions outside the state.

Wooden judge gavel with USA state flag on sound block - California - Image
California governor enacts law prohibiting pay-for-delay patent settlment agreements

California's law governing brand-generic patent settlement agreements appears to be more restrictive than the US Federal Trade Commission's position on these deals, as it says they are presumed to be anticompetitive if the generic manufacturer receives "anything of value" from the brand company, with certain exceptions.

California Governor Gavin Newsom signed the legislation, AB 824, into law on 7 October, noting that it is the...

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