Bill Text: IL HB4470 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Creates the Prohibition on Anticompetitive Pharmaceutical Practices Act. Provides that, except as specified, a court before which the Attorney General brings an action under the Act shall presume that a resolution agreement that ends a dispute over an alleged infringement of a patent, or a violation of other protection for a protected drug, has anticompetitive effects and is a violation of the Act if, as part of or in connection with the resolution agreement, an alleged infringer: (1) receives an item of value; or (2) agrees to limit or stop researching, developing, manufacturing, marketing, or selling a competing drug. Provides that a resolution agreement does not violate the Act and a party to the resolution agreement may overcome the presumption of anticompetition if the party, by a preponderance of evidence, can demonstrate that: (1) the item of value that the alleged infringer received is fair and reasonable compensation solely for other goods or services that the claimant promised to provide to the alleged infringer; or (2) the agreement has directly generated procompetitive benefits within the relevant market and the procompetitive benefits of the resolution agreement favor competition to the extent that the procompetitive benefits materially outweigh the anticompetitive effects of the resolution agreement. Sets forth provisions concerning penalties and enforcement of the Act by the Attorney General. Provides that the Act applies to resolution agreements: (1) that are negotiated, completed, or entered into within the State on or after the effective date of this Act; (2) where the dispute arose out of or was substantially related to pharmaceutical sales that were made within the State; or (3) where a party to the resolution agreement is an entity registered to conduct business within the State.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2026-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB4470 Detail]

Download: Illinois-2025-HB4470-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB4470 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED:
New Act
Creates the Prohibition on Anticompetitive Pharmaceutical Practices Act. Provides that, except as specified, a court before which the Attorney General brings an action under the Act shall presume that a resolution agreement that ends a dispute over an alleged infringement of a patent, or a violation of other protection for a protected drug, has anticompetitive effects and is a violation of the Act if, as part of or in connection with the resolution agreement, an alleged infringer: (1) receives an item of value; or (2) agrees to limit or stop researching, developing, manufacturing, marketing, or selling a competing drug. Provides that a resolution agreement does not violate the Act and a party to the resolution agreement may overcome the presumption of anticompetition if the party, by a preponderance of evidence, can demonstrate that: (1) the item of value that the alleged infringer received is fair and reasonable compensation solely for other goods or services that the claimant promised to provide to the alleged infringer; or (2) the agreement has directly generated procompetitive benefits within the relevant market and the procompetitive benefits of the resolution agreement favor competition to the extent that the procompetitive benefits materially outweigh the anticompetitive effects of the resolution agreement. Sets forth provisions concerning penalties and enforcement of the Act by the Attorney General. Provides that the Act applies to resolution agreements: (1) that are negotiated, completed, or entered into within the State on or after the effective date of this Act; (2) where the dispute arose out of or was substantially related to pharmaceutical sales that were made within the State; or (3) where a party to the resolution agreement is an entity registered to conduct business within the State.
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A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Prohibition on Anticompetitive Pharmaceutical Practices Act.
Section 5. Definitions. As used in this Act:
"Alleged infringer" means a person who receives or is
subject to an allegation, complaint, demand, service of
process, or other communication in connection with a claim
that the person's research, development, manufacture,
marketing, distribution, or sale of a competing drug infringes
a patent or other protection for a protected drug.
"Claimant" means a person who holds a patent for a
protected drug or is the beneficiary of other protection for a
protected drug.
"Competing drug" means a drug that has properties that are
similar enough to the properties of a protected drug to offer
market competition to the protected drug or that serve as a
basis for a claimant's claim that an alleged infringer that
manufactures, markets, distributes, or sells the drug has
infringed the patent or other protection for the protected
drug.
"Item of value" means any tangible or intangible item,

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including:
(1) an exclusive license to manufacture, market,
distribute, or sell a protected drug; or
(2) an agreement that a claimant will not manufacture,
market, distribute, or sell a generic version of a
protected drug in competition with the other party to the
agreement.
"Item of value" does not include an agreement for which
there is no consideration in the form of:
(1) a right or license to manufacture, market,
distribute, or sell in the United States a competing drug
before the expiration of:
(A) the patent for or a right related to the patent
for the protected drug; or
(B) the period during which federal law prevents
approval of an application to manufacture, market,
distribute, or sell a competing drug;
(2) a covenant not to sue on a claim that an alleged
infringer's competing drug infringes a patent;
(3) a payment to the alleged infringer of a portion of
the litigation and other legal expenses a claimant avoided
as a result of the agreement, if the claimant identified
and documented the expenses at least 6 months before
executing the agreement and the payment does not exceed
the lesser of:
(A) $7,500,000;

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(B) 5% of the revenue that the alleged infringer
projected receiving in the first 3 years of sales of
the alleged infringer's competing drug, if the alleged
infringer made and documented the projected revenue at
least one year before executing the agreement; or
(C) $250,000 if the alleged infringer did not make
and document the projected revenue as described in
subparagraph (B);
(4) permission for the alleged infringer to begin
manufacturing, marketing, distributing, offering for sale,
or selling a competing drug if, before the expiration of
the patent or other protection for the protected drug, the
claimant seeks or obtains approval to, or actually does,
manufacture, market, distribute, or sell a version other
than a licensed generic version of the protected drug that
has the same active ingredient but a different dosage,
strength, or physical form;
(5) a promise from the claimant to facilitate or not
to interfere with the alleged infringer's ability to
obtain regulatory approval to manufacture, market,
distribute, and sell a competing drug; or
(6) a renunciation or disclaimer of damages for an
alleged infringer's infringement of the patent or other
protection for the protected drug.
"Patent" means:
(1) a patent that has been issued;

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(2) an extension, reissue, renewal, division,
continuation, continuation in part, reexamination, or term
restoration for a patent;
(3) an application for a patent that has been filed;
or
(4) a patent of addition or an extension to a patent of
addition.
"Protected drug" means a pharmaceutical drug that is
subject to and protected by:
(1) a patent; or
(2) a federal law under which approval of an
application to manufacture, market, distribute, or sell a
competing drug may not occur for a specified length of
time.
"Resolution agreement" means an agreement in any form that
accompanies, is part of, is consideration for, is contingent
upon, is substituted for, or is otherwise directly related to
and is entered into within 30 days before or after:
(1) a settlement in lieu of a trial or a dismissal
following the commencement of an action;
(2) a mediated compromise or other compromise;
(3) a decision in an arbitration proceeding;
(4) a judgment entered by a court;
(5) a withdrawal, retraction, or suspension of a claim
or a failure to prosecute a claim that leads to a
dismissal; or

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(6) any other formal or informal resolution that ends
a dispute.
Section 10. Presumption of anticompetitive effects. Except
as provided in Section 15, a court before which the Attorney
General brings an action under this Act shall presume that a
resolution agreement that ends a dispute over an alleged
infringement of a patent, or a violation of other protection
for a protected drug, has anticompetitive effects and is a
violation of this Act if, as part of or in connection with the
resolution agreement, an alleged infringer:
(1) receives an item of value; or
(2) agrees to limit or stop researching, developing,
manufacturing, marketing, or selling a competing drug.
Section 15. Exemptions.
(a) A resolution agreement does not violate this Act and a
party to the resolution agreement may overcome the presumption
set forth in Section 10 if the party, by a preponderance of
evidence, can demonstrate that:
(1) the item of value that the alleged infringer
received is fair and reasonable compensation solely for
other goods or services that the claimant promised to
provide to the alleged infringer; or
(2) the agreement has directly generated
procompetitive benefits within the relevant market and the

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procompetitive benefits of the resolution agreement favor
competition to the extent that the procompetitive benefits
materially outweigh the anticompetitive effects of the
resolution agreement.
(b) In determining whether a party has met the party's
burden under this Section, the court:
(1) shall presume that the relevant market for the
purposes of determining the effects of the resolution
agreement consists of the market within this State for the
protected drug, the competing drug, and any other
biological product that, as described in 42 U.S.C.
262(i)(2), as in effect on the effective date of this Act,
is interchangeable with or biosimilar to the protected
drug; and
(2) may not presume that:
(A) because the alleged infringer could not have
manufactured, marketed, distributed, or sold a
competing drug before the patent or other protection
for a protected drug had expired, or because the
resolution agreement gives permission or a license to
the alleged infringer to manufacture, market,
distribute, or sell a competing drug, the benefits of
the resolution agreement outweigh the anticompetitive
effects of the resolution agreement;
(B) the patent or other protection for the
protected drug was enforceable and the alleged

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infringer did infringe the patent or violate another
available protection for the protected drug, unless a
final adjudication on the merits of the claimant's
claim or action determines that the patent or other
protection was enforceable and the infringement did
occur;
(C) the agreement did not delay the manufacturing,
marketing, distribution, or sale of a competing drug
because the alleged infringer lacked approval from the
federal Food and Drug Administration and the lack of
approval meant that the alleged infringer could not
have manufactured, marketed, distributed, or sold the
competing drug; or
(D) the agreement did not delay or cause harm
because the competing drug might have infringed a
patent or violated a protection for a protected drug
for which a claimant has not made a claim or for which
a final adjudication on the merits has not occurred
with respect to the scope, enforceability, or
infringement of the patent or other protection.
Section 20. Penalties and enforcement.
(a) A person who violates or assists in violating this
Act, in addition to and not in lieu of other remedies available
under other applicable laws, is liable for a civil penalty in
an amount that is equivalent to the greater of:

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(1) 3 times the value of the item of value that the
alleged infringer received; or
(2) $10,000,000 for each violation.
(b) The Attorney General, within 4 years after a violation
of this Act occurs or within 4 years after the Attorney General
discovers that a violation has occurred, whichever is later,
may bring an action in a circuit court of this State to punish
violations of this Act. The Attorney General shall deposit the
proceeds of any civil penalty the Attorney General recovers
from a violator into the General Revenue Fund.
Section 25. Applicability. This Act applies to resolution
agreements:
(1) that are negotiated, completed, or entered into
within this State on or after the effective date of this
Act;
(2) under which the dispute arose out of or was
substantially related to pharmaceutical sales that were
made within this State; or
(3) under which a party to the resolution agreement is
an entity registered to conduct business within this
State.