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Patents often get blamed when medicine prices make headlines - but without patents, many of the treatments we rely on simply wouldn't exist. A recent lawsuit involving Novo Nordisk and its diabetes drug Victoza is a good reminder of how patent law is designed to balance innovation with competition.
Some background
Victoza was approved in 2010 and became a breakthrough treatment for diabetes. Like most pharmaceutical innovations, it was protected by patents - giving Novo Nordisk a limited window of exclusivity to recover massive R&D costs and fund the next generation of medicines.
That model worked. Novo later developed newer GLP-1 treatments such as Ozempic, which have transformed diabetes care globally.
So, why the lawsuit?
A US drug wholesaler, Smith Drug, alleges that Novo used a so-called "pay-for-delay" settlement with Teva Pharmaceutical to postpone generic versions of Victoza. The claim is not that patents are unlawful - but that how they were exercised may have crossed into competition law territory.
This is where patent law actually shines
Modern IP systems don't give companies unchecked power. Patents expire. They can be challenged. And when patent enforcement is used in a way that allegedly extends exclusivity beyond its lawful term, competition law steps in as a safeguard.
In other words, the system already contains strong mechanisms to prevent abuse - without undermining the value of patents themselves.
Why this matters to everyday life
Patents encourage companies to take enormous scientific and financial risks. At the same time, legal checks ensure that once patent protection ends, generics can enter the market and drive prices down. That transition from exclusivity to competition is a feature, not a flaw.
The IP takeaway
Patents remain one of the most powerful tools for innovation we have. Cases like this don't weaken the patent system - they reinforce it by clarifying where legitimate protection ends and where competition must begin.
For innovators and businesses, the message is clear: file patents, use them wisely and trust that the law is built to keep the balance.
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