Drug companies transfer patents to Native American tribes

You may have seen the recent news that a drug company transferred its valuable patents to a Native American tribe in an effort to prevent the patents from being challenged. Is that what all the cool kids are doing these days? No, but they might start, depending on how some court decisions turn out.

Reports emerged in September that Allergan transferred patents covering Restasis, a drug for treating eye conditions, to the Saint Regis Mohawk Tribe in New York State. According to the New York Times, Allergan will pay the tribe millions of dollars and give them ownership of the patents, while the tribe in turn will lease the patents back to Allergan for it to use in exchange for more millions paid to the tribe in annual royalties. The New York Times notes, “In exchange, the tribe will claim sovereign immunity as grounds to dismiss a patent challenge….”