Brussels, 19 June 2013

EFPIA and its members are concerned about today's decision by the European Commission (see here). We believe that patent settlement agreements are efficiency enhancing and legitimate where there are bona fide grounds for dispute. The fact that they involve a payment does not call into question the validity or strength of the disputed patents. Judging patent validity is the sole prerogative of specialised patent offices and courts. Today's decision will only prolong patent litigation. It also weakens the protection afforded by patents and will undermine confidence in the patent system itself to the detriment of innovation and growth in Europe.

“The EU patent system is still a mess. It is no surprise that companies settle to save legal fees and uncertainty” said Richard Bergström, EFPIA’s Director General. It is a recognized fact that the current IP enforcement regime in Europe is fragmented and inefficient.  The European unified patent litigation system will improve the situation but for now, patent settlement agreements demonstrate the weaknesses of the system- for which competition rules are not a cure. In the absence of a "clearing the way" mechanism in Europe, allowing patent disputes to be resolved before generic entry, there should not be a presumption that patent settlement agreements are anti-competitive. Given the outlined situation any approach that encourages and prolongs patent litigation will undermine confidence in the patent system. Subsequent reductions in innovation will have knock-on effects for patient welfare and economic growth. The issues (explained in the EFPIA position paper) are sufficiently important to warrant a full policy debate at the level of the College of Commissioners.

We will await the publication of the Commission's full decision before commenting further.

About EFPIA:

EFPIA represents the pharmaceutical industry operating in Europe. Through its direct membership of 34 national associations and 40 leading pharmaceutical companies, EFPIA provides the voice of 1,900 companies committed to researching, developing and bringing new medicines to improve health and quality of life around the world. The pharmaceutical industry invests 27.5 billion on research and development per year in Europe and directly employs 660,000 people including 116,000 in R&D units in Europe. 

EFPIA members are committed to delivering innovative medicines to address unmet needs of patients and reducing the burden of chronic diseases for Europe’s ageing population. EFPIA believes in close cooperation with its stakeholders to help create sustainable healthcare   systems and to develop prompt responses to health threats in Europe.

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