Estate Planning News

Administrative law judge's decision gets upheld

KENILWORTH, N.J., March 09, 2005 /PRNewswire-FirstCall/ -- Schering-Plough Corporation said today it was pleased that the Federal Court of Appeals for the 11th Circuit, based in Atlanta, has ruled that Schering-Plough did not violate antitrust laws in patent litigation settlements involving its controlled-release potassium chloride supplement K-DUR(R) 20 (potassium chloride) USP.

The company has consistently maintained that the patent litigation settlements complied with the law and benefited consumers by allowing generic product to enter the market two to five years before the expiration of the relevant patent.

The Appeals Court on March 8, 2005, set aside a decision issued in December 2003 by the Federal Trade Commission (FTC), which had reversed the June 2002 initial decision of an FTC administrative law judge concerning the K-DUR patent settlements. The initial decision had held that patent litigation settlements involving K-DUR complied with the law and dismissed all charges filed against the company by the FTC's Bureau of Competition. In setting aside that 2003 Commission ruling, the Appeals Court also vacated the Commission's cease-and-desist order.

BACKGROUND

Schering-Plough holds a formulation patent for K-DUR, which gives the company the right to exclude infringing products into 2006. In 1995, Upsher- Smith and ESI Lederle filed separate Abbreviated New Drug Applications (ANDA) with the U.S. Food and Drug Administration (FDA) seeking to market generic versions of K-DUR. Schering-Plough brought separate actions against both companies alleging that their products infringed Schering-Plough's patent. In each case, Schering-Plough and the parties settled before trial. Under the settlements, licenses were agreed to allowing Upsher-Smith to bring its product to market in September 2001 and ESI Lederle to bring its product to market in January 2004.

The FTC Bureau of Competition in March 2001 filed a complaint in Washington, D.C. before an FTC administrative law judge charging that the patent litigation settlements involving K-DUR were anti-competitive and violated the Federal Trade Commission Act.

Schering-Plough is a global science-based health care company with leading prescription, consumer and animal health products. Through internal research and collaborations with partners, Schering-Plough discovers, develops, manufactures and markets advanced drug therapies to meet important medical needs. Schering-Plough's vision is to earn the trust of the physicians, patients and customers served by its more than 30,000 people around the world. The company is based in Kenilworth, N.J., and its Web site is http://www.schering-plough.com/.

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	Did You Know?
	A "Family Limited Partnership" can be used to own and manage your property In a similar manner to a Trust, but allowing additional tax planning techniques to be employed. Family Limited Partnerships are typically used for those who have large estates and thus have a need for specialized estate planning in order to minimize federal and state estate/death/inheritance taxes as well as provide elements of asset protection.