Apple Likes the Patent ‘Death Squad.’ Allergan Pays to Avoid It
- Drugmaker’s bid to pay tribe points to dislike of patent board
- Patent office reviews spark backlash in courts, Congress
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Allergan Plc’s decision to pay a Native American tribe $15 million a year rather than let one of its blockbuster drugs be scrutinized by the U.S. Patent & Trademark Office is part of a backlash against an agency review panel that has been dubbed a “death squad.”
The drugmaker earlier this month transferred ownership of patents protecting a medicine with $1.49 billion in sales last year to the Saint Regis Mohawk Tribe of upstate New York. The tribe, which will receive royalties every year, says that as a sovereign entity it is immune from such civil patent challenges.