Allergan’s unusual legal tactic attracts political scrutiny

Allergan’s unusual legal tactic attracts political scrutiny

“BRAZEN” and “absurd”: Allergan certainly drew a reaction from American lawmakers when it transferred its patents for Restasis, a dry-eye drug, to the Saint Regis Mohawk Tribe in September. Last week a congressional committee held a hearing on the deal, which, if recognised as valid, risks undermining the American patent-review system.

As entities granted sovereign status, Native American tribes enjoy legal immunity and so, Allergan hopes, can ward off challenges to the patents by rival drugmakers. The tribe, which is based in New York state, wants to reduce its reliance on revenues from its local casino. It received $14m when it acquired the patents, and will relicense them to Allergan for a yearly fee of $15m.

Tribes are targeting other industries, too. The Mohawk tribe holds patents for SRC Labs, a tech firm, and says it expects to earn a “significant amount of money” by suing other firms for infringement. It has already sued Amazon and Microsoft. Another patent-holding company, owned by three Native…Continue reading

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