KFTC reviews Patent License Contracts related to Patent MA Linkage



Recently the Korean Fair Trade Commission (KFTC) requested pharmaceutical companies to submit information including patent license contracts and patent litigations or disputes. It was to scrutinise fair trade practices in pharmaceutical industry.


Korea has implemented the Patent Marketing Approval Linkage system over 2 years since March 15, 2015. There was a dramatic increase in the number of patent disputes filed between original drug manufacturers and generics.


KFTC will look into any changes in pharmaceutical companies' IP practices after the patent MA linkage system. Particularly KFTC will review any settlement agreements or other business arrangements that may have been entered into as a result of such IP disputes.


KFTC may further investigate specific companies based on the information and materials that have been submitted. On the other hand, if KFTC may conduct an ex parte raid on the responding company, in case KFTC decide it is necessary to investigate a particular suspicious case.



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