Bipartisan Legislation to Block Sovereign Immunity Claims

Sen. Tom Cotton (R-AR) and three Republican and Democrat colleagues have introduced the Preserve Access to Cost Effective Drugs (PACED) Act to restore the power of the Patent and Trade Office and federal courts and the International Trade Commission to review patents regardless of sovereign immunity claims made as part of sham transactions. In a statement, Cotton says that under current law, patent holders can pay Indian tribes to take “ownership” of their patents and then claim sovereign immunity and avoid review in case of a dispute, which could lead to widespread patient abuse and increased costs for consumers.

“It’s far past time that we crack down on patent abuse, which is raising costs for our seniors,” Cotton said. “This bill will make sure unscrupulous patent holders can’t game the system and block their competitors from entering the market. That’ll go a long way to help seniors get the drugs they need.”