Managing IP is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Bass files 16th IPR petition as opposition continues to build

Kyle Bass has filed another IPR petition targeting a pharma company, taking aim again at the Vimovo pain reliever, while IPO has passed a resolution opposing the use of post-grant proceedings to manipulate the market


The Coalition for Affordable Drugs has filed its 16th inter partes review (IPR) petition, taking aim for a second time at the Vimovo treatment made by Pozen and sold by Horizon Pharma in the US. Vimovo is an arthritis pain reliever.

Kyle Bass, who runs hedge fund Hayman Capital, and Erich Spangenberg, owner of nXn Partners, are behind the coalition. IP Nav is also involved.

I spoke to Bass last month for our June cover story and he made very clear that he is serious about taking on pharmaceutical and biotech companies through Patent Trial and Appeal Board proceedings and that he will not give up.

You can read the full story, including an analysis of Bass’s strategy, the response from IP practitioners and trade groups, and the potential action from Congress and the Board here (only available to subscribers and trialists – you can take out a trial to the site here).

Bass underlined that he is filing merit-based IPRs with the expectation of seeing the challenge through to a final decision by the PTAB. Hayman Capital says it will not accept settlement payments to drop its challenges.

Bass praised the IPR system. "It is very pro-competitive," he told me. "It was designed to mine-clear patent trolls in the tech space, and now it is allowing firms like ours to challenge patent squatters."

Pharma and bio patent owners have not taken lightly to Bass’s provocation. BIO labeled his strategy “a new door to abuse of the patent system”, and accused him of using PTAB proceedings to short sell stock.

Last week, the PATENT Act was reported to the full Senate and included a new provision allowed the PTAB to deny petitions “in the interest of justice”. This was likely drafted with PTAB strategies such as Bass's in mind. 

And this week IPO passed a resolution opposing the use of post-grant proceedings to manipulate the market.

The resolution said: “IPO believes it is an abuse to file AIA petitions for post grant proceedings by persons who have a significant bet against, or short, of the shares of the patent owners owning the patents challenged in the petitions; now, therefore, IPO urges the United States Patent and Trademark Office to use its discretion to deny petitions filed by such persons.”

Only 30% of our content is published on our blog – to access all of our content you need to be a subscriber.

We like to offer our loyal blog readers a special rate, so register your interest in coming on board as a subscriber and we will be in touch shortly.


more from across site and ros bottom lb

More from across our site

Significant changes to the standard of law are unlikely, say sources, who note that some justices seemed sceptical that the parties disagreed on the legal standard
Sources say the High Court of Australia’s ruling that reputation is immaterial in trademark infringement cases could stop famous brands from muscling out smaller players
Members from both sides of the US House of Representatives wrote to USPTO director Kathi Vidal on Friday, March 24, expressing their concern about “patent thicketing.”
Charles Hoskin of Singaporean e-commerce platform Shopee, who made the jump from a luxury brand, says honest conversations and collaborations are key to combatting counterfeiting
Adam Williams speaks to Managing IP about the legacy of Brexit and why IP has sometimes got ‘lost in the noise’ at Westminster
Lawyers wish the latest manual had more details on Federal Circuit cases and that training materials for design patent examiners were online
Counsel are eying domestic industry, concurrent PTAB proceedings and heightened scrutiny of cases before institution
Jack Daniel’s has a good chance of winning its dispute over dog toys, but SCOTUS will still want to protect free speech, predict sources
AI users and lawyers discuss why the rulebook for registering AI-generated content may create problems and needs further work
We provide a rundown of Managing IP’s news and analysis coverage from the week, and review what’s been happening elsewhere in IP