US FTC finalizes amendments to the premerger notification rules on patent right transfers

The US Federal Trade Commission yesterday (November 6) issued final changes to the premerger notification rules that require companies in the pharmaceutical industry to report certain proposed acquisitions of exclusive patent rights to the FTC and the Department of Justice for antitrust review.

The revised rules clarify when a transfer of exclusive rights to a patent in the pharmaceutical industry results in a potentially reportable asset acquisition under the Hart Scott Rodino (HSR) Act.

The HSR Act established the federal premerger notification program, which provides the FTC and the Department of Justice with information about certain large mergers and acquisitions before they occur. The FTC administers the premerger notification program and ensures compliance with the HSR Rules, which determine which transactions companies need to report. The revised rules will enhance the effectiveness of the agencies' premerger program.