Federal Trade Commission, Petitioner v. Actavis, Inc.

Summary

The Court held that reverse payment settlement agreements in patent litigation can sometimes violate antitrust laws and are not automatically immune from such attacks. Reversing the Eleventh Circuit, the Court determined that such agreements should be evaluated under the rule of reason. The Court found that large, unjustified payments to potential competitors may indicate a patentee's doubts about patent validity and can harm competition by delaying generic entry.