US appeals court holds that Schering-Plough's patent settlement with generic drug manufacturers was not anti-competitive contrary to the FTC's finding

On appeal, the Eleventh Circuit has set aside the Federal Trade Commission's (FTC) decision holding that Schering-Plough's settling of patent infringement cases with two generic drug manufacturers was anti-competitive. The court held that, where a settlement stays within the scope of the patent's protection, settlement provisions that include payments in return for deferred entry of generic products could not be the sole basis for an anti-trust violation.

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