Supreme Court Rejects Allergan's Bid To Use Tribe To Shield Pate

Supreme Court Rejects Allergan's Bid To Use Tribe To Shield Patents

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It looks like the Saint Regis Mohawk Tribe will be out millions of dollars due to an action by the U.S. Supreme Court.

The high court refused to take up an argument over a tribal licensing deal which involved transferring drug company patents to the Saint Regis Mohawk Tribe and licensing them back. 

Allergan tried to prevent competitors from making generic versions of Restasis by using the Akwesasne reservation's sovereign immunity. 

In 2017, Allergan agreed to sell its patents to the Saint Regis Mohawk Tribe for nearly $14 million.

Allergan also agreed to pay the tribe $15 million in annual royalties for seven years to lease the patents back to the drug maker.

However, other courts invalidated the patents, prompting Allergan to appeal the ruling.

Now that the U.S. Supreme Court has refused to hear the case, the lower court’s ruling stands that the patent protection strategy is invalid. 

7 News has reached out to the tribe for comment. We'll update this story if we hear from officials.
 

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