ANTICOMPETITIVE PHARMACEUTICAL

Illinois General Assembly - Full Text of HB4470

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HB4470 - 104th General Assembly

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4470

Introduced 1/20/2026, 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.
LRB104 13667 BAB 26326 b

A BILL FOR

HB4470
LRB104 13667 BAB 26326 b
1

AN ACT concerning regulation.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 1.
Short title.
This Act may be cited as the
5
Prohibition on Anticompetitive Pharmaceutical Practices Act.

6

Section 5.
Definitions.
As used in this Act:
7

"Alleged infringer" means a person who receives or is
8
subject to an allegation, complaint, demand, service of
9
process, or other communication in connection with a claim
10
that the person's research, development, manufacture,
11
marketing, distribution, or sale of a competing drug infringes
12
a patent or other protection for a protected drug.
13

"Claimant" means a person who holds a patent for a
14
protected drug or is the beneficiary of other protection for a
15
protected drug.
16

"Competing drug" means a drug that has properties that are
17
similar enough to the properties of a protected drug to offer
18
market competition to the protected drug or that serve as a
19
basis for a claimant's claim that an alleged infringer that
20
manufactures, markets, distributes, or sells the drug has
21
infringed the patent or other protection for the protected
22
drug.
23

"Item of value" means any tangible or intangible item,

HB4470
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LRB104 13667 BAB 26326 b
1
including:
2

(1) an exclusive license to manufacture, market,
3

distribute, or sell a protected drug; or
4

(2) an agreement that a claimant will not manufacture,
5

market, distribute, or sell a generic version of a
6

protected drug in competition with the other party to the
7

agreement.
8

"Item of value" does not include an agreement for which
9
there is no consideration in the form of:
10

(1) a right or license to manufacture, market,
11

distribute, or sell in the United States a competing drug
12

before the expiration of:
13

(A) the patent for or a right related to the patent
14

for the protected drug; or
15

(B) the period during which federal law prevents
16

approval of an application to manufacture, market,
17

distribute, or sell a competing drug;
18

(2) a covenant not to sue on a claim that an alleged
19

infringer's competing drug infringes a patent;
20

(3) a payment to the alleged infringer of a portion of
21

the litigation and other legal expenses a claimant avoided
22

as a result of the agreement, if the claimant identified
23

and documented the expenses at least 6 months before
24

executing the agreement and the payment does not exceed
25

the lesser of:
26

(A) $7,500,000;

HB4470
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LRB104 13667 BAB 26326 b
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(B) 5% of the revenue that the alleged infringer
2

projected receiving in the first 3 years of sales of
3

the alleged infringer's competing drug, if the alleged
4

infringer made and documented the projected revenue at
5

least one year before executing the agreement; or
6

(C) $250,000 if the alleged infringer did not make
7

and document the projected revenue as described in
8

subparagraph (B);
9

(4) permission for the alleged infringer to begin
10

manufacturing, marketing, distributing, offering for sale,
11

or selling a competing drug if, before the expiration of
12

the patent or other protection for the protected drug, the
13

claimant seeks or obtains approval to, or actually does,
14

manufacture, market, distribute, or sell a version other
15

than a licensed generic version of the protected drug that
16

has the same active ingredient but a different dosage,
17

strength, or physical form;
18

(5) a promise from the claimant to facilitate or not
19

to interfere with the alleged infringer's ability to
20

obtain regulatory approval to manufacture, market,
21

distribute, and sell a competing drug; or
22

(6) a renunciation or disclaimer of damages for an
23

alleged infringer's infringement of the patent or other
24

protection for the protected drug.
25

"Patent" means:
26

(1) a patent that has been issued;

HB4470
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LRB104 13667 BAB 26326 b
1

(2) an extension, reissue, renewal, division,
2

continuation, continuation in part, reexamination, or term
3

restoration for a patent;
4

(3) an application for a patent that has been filed;
5

or
6

(4) a patent of addition or an extension to a patent of
7

addition.
8

"Protected drug" means a pharmaceutical drug that is
9
subject to and protected by:
10

(1) a patent; or
11

(2) a federal law under which approval of an
12

application to manufacture, market, distribute, or sell a
13

competing drug may not occur for a specified length of
14

time.
15

"Resolution agreement" means an agreement in any form that
16
accompanies, is part of, is consideration for, is contingent
17
upon, is substituted for, or is otherwise directly related to
18
and is entered into within 30 days before or after:
19

(1) a settlement in lieu of a trial or a dismissal
20

following the commencement of an action;
21

(2) a mediated compromise or other compromise;
22

(3) a decision in an arbitration proceeding;
23

(4) a judgment entered by a court;
24

(5) a withdrawal, retraction, or suspension of a claim
25

or a failure to prosecute a claim that leads to a
26

dismissal; or

HB4470
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LRB104 13667 BAB 26326 b
1

(6) any other formal or informal resolution that ends
2

a dispute.

3

Section 10.
Presumption of anticompetitive effects.
Except
4
as provided in Section 15, a court before which the Attorney
5
General brings an action under this Act shall presume that a
6
resolution agreement that ends a dispute over an alleged
7
infringement of a patent, or a violation of other protection
8
for a protected drug, has anticompetitive effects and is a
9
violation of this Act if, as part of or in connection with the
10
resolution agreement, an alleged infringer:
11

(1) receives an item of value; or
12

(2) agrees to limit or stop researching, developing,
13

manufacturing, marketing, or selling a competing drug.

14

Section 15.
Exemptions.
15

(a) A resolution agreement does not violate this Act and a
16
party to the resolution agreement may overcome the presumption
17
set forth in Section 10 if the party, by a preponderance of
18
evidence, can demonstrate that:
19

(1) the item of value that the alleged infringer
20

received is fair and reasonable compensation solely for
21

other goods or services that the claimant promised to
22

provide to the alleged infringer; or
23

(2) the agreement has directly generated
24

procompetitive benefits within the relevant market and the

HB4470
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LRB104 13667 BAB 26326 b
1

procompetitive benefits of the resolution agreement favor
2

competition to the extent that the procompetitive benefits
3

materially outweigh the anticompetitive effects of the
4

resolution agreement.
5

(b) In determining whether a party has met the party's
6
burden under this Section, the court:
7

(1) shall presume that the relevant market for the
8

purposes of determining the effects of the resolution
9

agreement consists of the market within this State for the
10

protected drug, the competing drug, and any other
11

biological product that, as described in 42 U.S.C.
12

262(i)(2), as in effect on the effective date of this Act,
13

is interchangeable with or biosimilar to the protected
14

drug; and
15

(2) may not presume that:
16

(A) because the alleged infringer could not have
17

manufactured, marketed, distributed, or sold a
18

competing drug before the patent or other protection
19

for a protected drug had expired, or because the
20

resolution agreement gives permission or a license to
21

the alleged infringer to manufacture, market,
22

distribute, or sell a competing drug, the benefits of
23

the resolution agreement outweigh the anticompetitive
24

effects of the resolution agreement;
25

(B) the patent or other protection for the
26

protected drug was enforceable and the alleged

HB4470
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LRB104 13667 BAB 26326 b
1

infringer did infringe the patent or violate another
2

available protection for the protected drug, unless a
3

final adjudication on the merits of the claimant's
4

claim or action determines that the patent or other
5

protection was enforceable and the infringement did
6

occur;
7

(C) the agreement did not delay the manufacturing,
8

marketing, distribution, or sale of a competing drug
9

because the alleged infringer lacked approval from the
10

federal Food and Drug Administration and the lack of
11

approval meant that the alleged infringer could not
12

have manufactured, marketed, distributed, or sold the
13

competing drug; or
14

(D) the agreement did not delay or cause harm
15

because the competing drug might have infringed a
16

patent or violated a protection for a protected drug
17

for which a claimant has not made a claim or for which
18

a final adjudication on the merits has not occurred
19

with respect to the scope, enforceability, or
20

infringement of the patent or other protection.

21

Section 20.
Penalties and enforcement.
22

(a) A person who violates or assists in violating this
23
Act, in addition to and not in lieu of other remedies available
24
under other applicable laws, is liable for a civil penalty in
25
an amount that is equivalent to the greater of:

HB4470
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LRB104 13667 BAB 26326 b
1

(1) 3 times the value of the item of value that the
2

alleged infringer received; or
3

(2) $10,000,000 for each violation.
4

(b) The Attorney General, within 4 years after a violation
5
of this Act occurs or within 4 years after the Attorney General
6
discovers that a violation has occurred, whichever is later,
7
may bring an action in a circuit court of this State to punish
8
violations of this Act. The Attorney General shall deposit the
9
proceeds of any civil penalty the Attorney General recovers
10
from a violator into the General Revenue Fund.

11

Section 25.
Applicability.
This Act applies to resolution
12
agreements:
13

(1) that are negotiated, completed, or entered into
14

within this State on or after the effective date of this
15

Act;
16

(2) under which the dispute arose out of or was
17

substantially related to pharmaceutical sales that were
18

made within this State; or
19

(3) under which a party to the resolution agreement is
20

an entity registered to conduct business within this
21

State.

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