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Inthe
atuurtaf
Appeal
ofthe
ht
f<lta1ifnrnia
FOURTHAPPELLATEDISTRICTDIVISIONONE
D056361INRECIPROCASESIANDIIKARYNMcGAUGHEY,etaI.,
Plaintiffs-Appellants,
v.
BAYERCORPORATION,etal.,
Defendants-Respondents.
APPEALFROMTHESUPERIORCOURTOFSANDIEGOCOUNTYHON.RICHARDE.
L.
STRAUSS.CASENOS.JCCP4154AND
Jeep
4220SERVICEONATTORNEYGENERALANDDISTRICTATTORNEYREQUIREDUNDERBUSINESSANDPROFESSIONSCODE
§
17209ANDeRC8.29
BRIEFAMICICURIAEOF78INTELLECTUALPROPERTYLAW,ANTITRUSTLAW,ECONOMICS,ANDBUSINESSPROFESSORSINSUPPORTOFAPPELLANT
MARKA.
LEMLEY,
ESQ.
(155830)STANFORDLAWSCHOOL559NathanAbbott
Way
Stanford.California94305(650)723-4605Telephonemlemlev@law.stanford.edu
BriefAmiciCuriaeof
78
IntellectualPropertyLaw,AntitrustLaw,Economics,andBusinessProfessorsinSupportofAppellant
•COUNSELPRESS.
(800)3-APPEAL
PRINTEDONRECYCLEDPAPER
 
TABLEOFCONTENTS
TABLEOFAUTHORITIESiiQUESTIONPRESENTED
vi
INTERESTOFTHEAlVlICICURIAE
1
ARGUMENT2
1.
TheTrialCourtErredinFollowingaMisguidedViewThatHasBeenRejectedByOtherFederalCourts2II.ExclusionPaymentsAreGenerallyAnticompetitive7A.TheSettlingPartiesHaveanIncentivetoPreserveMonopolyProfitsinWaysThatHarmConsumers,Competition,andPublicHealth7B.TheTrialCourtWronglyAssumedThatEveryPatentHolderHasanAbsoluteRighttoPreventCompetition9C.PermittingExclusionPaymentsIsNotNecessaryToEncourageSettlementsinthePublicInterest12III.TheCostsofAllowingAnticompetitiveSettlementsAreEnormous15CONCLUSION17CERTIFICATEOFCOMPLIANCE18APPENDIXA:LISTOFSIGNATORIES19DECLARATIONOFSERVICE
1
 
TABLEOFAUTHORITIESCASES
ArkansasCarpenters'HealthandWelfareFundv.BayerAG,
604F.3d98(2dCir.2010),
.4
Aronsonv.QuickPointPencilCo.,
440U.S.257(1979)8
Blonder-TongueLabs.v.Univ.ofIllinoisFound.,
402
cU.S.
313(1971)8
InreCardizemCDAntitrustLitig.,
332F.3d896(6thCir.2003)..
.4
InreCiprofloxacinHydrochlorideAntitrustLitig.,
544F.3d1323(Fed.Cir.2008)1,5
InreEtter,
.756F.2d852(Fed.Cir.1985)10
InreScheringPloughCorp.,
No.9297(F.T.C.Dec.18,2003),
rev'd,
402F.3d1056(llthCir.2005)4
InreTamoxifenCitrateAntitrustLitig.,
466F.3d187(2dCir.2006)~1,12
Lear,Inc.v.Adkins,
395
U.S.
653(1969)8,10,12
Palmerv.BRGofGeorgia,Inc.,
498
U.S.
46(1990)7
PopeMenutscturingCo.v.Gormully,
144
U.S,
22,4(1892)15
11
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