In a few months, the U.S. Supreme Court will decide a closely watched case that could lead to patents being canceled more easily and, therefore, chill deals that small drug makers may pursue in hopes of finding larger partners to get their medicines to market.
The case turns on disputed language in U.S. patent law, which was overhauled in 2011, that prohibits a company from patenting an invention if it was for sale for more than a year before filing a patent application. The court, which heard oral arguments on Tuesday, must decide whether Congress intended the law to apply only to agreements that are publicly known or also encompasses confidential transactions out of the public eye.
“There has been a lot of debate and uncertainty,” said Jake Holdreith, a partner at the Robins Kaplan law firm who heads the health and life sciences practice. “The pharmaceutical industry needs to know the rules of the road so they can conduct their business with some confidence and can protect their inventions with patents.”
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