FTC Supports Patent Office Rule to Expand Settlement Disclosure

The Federal Trade Commission endorsed the US Patent and Trademark Office’s proposal to expand the requirement for when companies must file settlement agreements.

The agency supports closing a loophole that presently allows parties to circumvent disclosure requirements if they settle before an administrative tribunal decides whether to review a patent validity challenge, according to the Tuesday comment. Extending disclosure obligations to a broader set of settlement agreements would enhance the FTC’s ability to identify and investigate potentially unlawful settlements in the pharmaceutical context and more broadly, the agency said.

The PTO published a highly-anticipated rulemaking on April 19 to ...