Patents, IRS, Patent Litigation

Tax Bytes: Week of March 24, 2025

Eversheds Sutherland (US) LLP on 3/27/2025

Tax developments - Actavis and deductible expenses - On March 21, 2025, the Court of Appeals for the Federal Circuit released a decision in Actavis Laboratories FL, Inc. v. United States, holding that taxpayers could...more

A Recent Tax Ruling Has Made ANDA Litigation Less Burdensome for Generics

Fenwick & West LLP on 3/25/2025

In Actavis v. U.S., a case at the intersection of tax law and patent law, the Federal Circuit held that generic drug companies’ Hatch-Waxman litigation expenses are “ordinary and necessary business expenses” and can be...more

Third Circuit holds patent infringement fees do not facilitate ANDA approval

Eversheds Sutherland (US) LLP on 8/1/2023

In an opinion released July 27, 2023, the Third Circuit affirmed a 2021 Tax Court decision upholding a pharmaceutical company’s immediate deduction of patent defense litigation costs in suits brought under the Hatch-Waxman...more

Tough Medicine, Part 2: Litigation lessons from Medtronic

Eversheds Sutherland (US) LLP on 8/25/2022

The Tax Court issued its second opinion in Medtronic following a remand by the US Court of Appeals for the Eighth Circuit (Medtronic, Inc. v. Comm’r, 900 F.3d 610 (8th Cir. 2018)) of its earlier decision. In that...more

Hatch-Waxman Litigation Costs Both Capital Expenditures And Ordinary Business Expenses

Tarter Krinsky & Drogin LLP on 5/19/2021

Under the Internal Revenue Code (“Code”) Section 162, ordinary and necessary business expenses are deductible, but Code Section 263 disallows a deduction for capital expenditures (“no deduction shall be allowed” for a capital...more

Intellectual Property Bulletin - Summer 2018

Fenwick & West LLP on 7/11/2018

In This Issue - US Taxation of IP After Tax Reform - U.S. taxation of intellectual property has become astoundingly more complex after the Tax Cuts and Jobs Act. The new rules are so complex that the IRS and Treasury...more