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Patent litigation in South Africa often forms part of a global patent litigation strategy where corresponding patents in jurisdictions such as the US and Europe are also in play. The patentee may decide to settle the litigation on a global basis, resulting in the litigation being withdrawn in South Africa too. But patentees should make sure the settlement agreement complies with the Competition Act. In the pharmaceutical sector, the parties sometimes agree that in return for the patentee’s withdrawal of an action for infringement against a generic company, the generic company will launch a competing generic product only a few years after the patentee’s patent expires. This essentially extends the exclusivity of the patentee in respect of its product beyond the life of the patent. |
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![]() Directors and persons in "management authority" can breathe a sigh of relief as the Competition Amendment Bill (the Bill) has been sent back to the drawing board (the National Assembly) by President Kgalema Motlanthe amidst concerns that the Bill may be unconstitutional. The Bill aims, inter alia, at criminalizing the conduct of such persons in causing their firms to conduct their affairs in an anticompetitive manner. The Bill also extends to instances wherein such persons knowingly acquiesce to such conduct. |
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![]() Developments contained in the Competition Amendment Bill (B31D-2008) have emphasised the importance of complying with competition law as part of corporate governance and risk management. |
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