Third Circuit has previously ruled that non-cash payments to settle patent litigation may violate antitrust laws.

On November 7, 2016, the Supreme Court of the United States declined to hear the petition of GlaxoSmithKline LLC (GSK), Teva Pharmaceutical Industries Ltd. and Teva Pharmaceuticals, USA (together, Teva) from the Third Circuit’s ruling in King Drug Co. of Florence, Inc. v. SmithKline Beecham Corp., 791 F.3d 388 (3d Cir. 2015). As a result, the law in the Third Circuit is that non-cash payments made by the holder of a drug-patent to an infringer — to settle litigation over validity or infringement — may in some cases violate the antitrust laws.