Pay for Delay

Why is it that generic drug makers sometimes delay entering the market, sometimes long after the drug patent expires? This is another tale in corporatocracy, told by Alternet:

[I]magine you’re a big-time drug company. You want to keep competitors off the market as long as possible. Your move is to basically sue the pants off the generic drugmaker for copyright infringement, setting in motion a long and tortuous legal process. And these usually end with “pay-for-delay” deals. The brand-name drug company pays the generic manufacturer a cash settlement, and the generic manufacturer agrees to delay entry into the market for a number of years. In the case before the Supreme Court, the drug company paid $30 million a year to protect its $125 million annual profit in AndroGel, a testosterone supplement. It’s hard to see this as anything but bribery, designed to preserve a lucrative monopoly for the brand-name drug maker. In fact, this is what the Federal Trade Commission has argued for over a decade. They consider it a violation of antitrust law, arguing that the exchange of cash gives the generic manufacturer a share of future profits in the drug, specifically to prolong the monopoly. As SCOTUSBlog summarizes from the FTC’s court brief, in the regulator’s view, “Nothing in patent law … validates a system in which brand-name companies could buy off their would-be competitors.” Indeed, everyone wins with pay-for-delay but the consumer: the FTC estimates that the two dozen deals inked in 2012 alone cost drug patients $3.5 billion annually, with the brand-name and generic manufacturers splitting the ill-gotten profits.

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Proposed new law to protect bloggers from SLAPP suits

Join EFF and the Public Participation Project in calling on Congress to support the PETITION Act, strong federal anti-SLAPP legislation. The concept is simple: when a blogger faces a legal threat for legitimate online content, she can file a motion to get the case dismissed quickly. If the case is found to be frivolous in court, she won't have to pay the legal fees." Here is discussion of a meritless suit against Matthew Inman that illustrates the need for such a law.

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Illegal downloading: more like trespass than stealing

This ABC news report reframes what it means to illegally download intellectual property.

[Professor Stuart Green from Rutgers University Law School] says illegal downloading is more similar to the crime of trespass than it is to theft. "To say that there was a trespass is traditionally understood to mean that there was a temporary use of someone's property without permission," he said. "If someone trespasses on your property it means that they've come uninvited but they haven't deprived you of use. They haven't deprived you of the basic possession of the property. "But to say that someone's stolen something is to say something much more serious. It's probably the single most substantial form of property crime that we have. "And that's exactly what the music and movie industries in the United States would like to happen. They want people to think that illegal downloading is just as bad and should be punished just as severely."

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