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IP settlement agreements and competition law: European Commission guidance, TTBER pitfalls, and pay-for-delay in pharmaceuticals, with EU and UK case law

Practice notes
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IP disputes arise where one side—typically the claimant in this note—asserts that its patent has been infringed, while the defendant contests the patent’s validity. These matters are commonly resolved through settlement, yet such arrangements can themselves fall foul of Article 101(1) TFEU. The European Commission (the Commission) has provided guidance addressing this point.

NOTE—

Although the Brexit transition period ended on 31 December 2020, this Practice Note continues to cite EU and UK competition law side by side. That is because, even though UK regulators and courts may now depart from EU jurisprudence, any divergence between the two systems is expected to be incremental and progressive, as such, over time, since: (i) the UK competition framework is strongly grounded in concepts honed and refined over many years in EU case law (concepts which the UK courts were required to apply in harmony with UK competition law); and (ii) unless the UK decides to force the pace of change by legislating (which currently seems unlikely), the scope for divergence will depend on the issues raised by cases coming before the CMA and the courts now that the transition period has passed...

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Web page updated on 21/05/2026

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