Double Fault For Stepping Over the Line: a Simple Game of Transnational Patent Litigation

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DOUBLEFAULTFORSTEPPINGOVERTHELINE:ASIMPLEGAMEOF
TRANSNATIONALPATENTLITIGATION
JASONMOSCOVICI*
ROBIC,LLP
LAWYERS,PATENTANDTRADE-MARKAGENTS
InApotexInc.vs.Sanofi-Aventis(2011FC1486),theFederalCourtofCanadahas
condonedtheabilityforaplaintiffengagedintransnationalpatentlitigation,i.e.
litigationinvolvingthesamepartiesbutinseveraljurisdictions,toobtain
compensationforarelatedinfringingactivityonbothsidesoftheborder.
Thefactsareasfollows:SanoficommercializesPlavix(clopidogrel),adrugusedto
inhibitbloodclots.ThismedicinalingredientwascoveredbyCanadianpatent
1,336,777(the‘777patent),andbycorrespondingAmericanpatent4,487,265(the
‘265patent).
ApotexpurchasedandimportedbulkquantitiesofclopidogrelintoCanada,whichit
thenexportedandsoldintheUnitedStates.Sanoficonsequentlytookpatent
infringementactionsinbothjurisdictions.WithrespecttotheUSproceedings,the
partiesenteredintoasettlementagreementthatincludedthepossibilityoftryingthe
matterbeforetheCourtifcertainconditionswerenotmet.Theseconditionswerenot
fulfilledandtheAmericancasewenttotrial-Apotexwasorderedtopayupwardsof
$500000,inaccordancewiththetermsofthesettlementagreementwhichfixedany
damagesat50%ofthenetsalesofclopidogrel.
OncetheUSproceedingsweresettled,SanofitooklegalactioninCanada,claiming
infringementofthe‘777patentinresponsetoapatentimpeachmentactiontakenby
Apotex.Apotexnotonlyarguedthatthe‘777patentwasinvalid,butthatSanoficould
notsueApotexasecondtimefortheexactsameclopidogrelforwhichtheyhave
alreadysecuredjudgmentandpaymentintheUS.
Interestingly,theCourtopinedthatSanofiwasnotprecludedfromsuingApotex“a
secondtime”,astheCanadiancaseinvolvedacompletelydifferentpatent-theCA
‘777patent-andadifferentinfringingactivity:importationvs.sale.Apotexargued
thatthepartieshadeffectivelysettledthematterandhadsignedanagreement
coveringtheirallegedactivities.TheCourthowever,didnotagreewithApotexand
foundthatthesignedsettlementagreementinvolvedonlytheUS‘265patentand
relatedtotheAmericanactivitiesalone.Inotherwords,ifthepartieshadintendedto
©CIPS,2012.*FromROBIC,LLP,multidisciplinaryfirmofLawyers,andPatentandTrade-markAgents.Published
intheSpring2012(Vol.16,no.1)Newsletterofthefirm.Publication068.149E.

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settleallpendinglitigationinalljurisdictions,theyshouldhaveexpresslystatedthisin
theagreement.
Asissometimesthecaseinthistypeofproceeding,thecontractualinterpretation
madebytheCourtendedupbeingmootasitwasfoundthatthe‘777patentwas
invalidforinsufficientdisclosure,andtherefore,Sanofi’scaseforinfringementwas
dismissed.
Whilethisfindingofinvalidityisinterestingonitsown,fromapurelybusiness
perspective,Sanoficouldhavebeenawardedfurtherdamagesfortheexactsame
clopidogrelthatwassoldintheUS.Itissaidthatamisplacedcommacancostyou
millionsofdollars,andthiscaseisalmostaperfectexample.
Itisadvisabletothinktwicewhendraftingthetermsofasettlementagreement,and
toalwaysbeawareoftheimpactthatsuchanagreementmayhaveonother
jurisdictions.HadApotexconsideredtheimpactoftheirUSsettlementagreementon
outsidelitigation,theymayhavechosentowordthingsdifferently,sparing
themselvestheexpenseofasavourydoubledip.
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