The NY Times recently covered a fascinating deal between the pharmaceutical company Allergan and the Saint Regis Mohawk Tribe, a Native American tribe from New York. 

In return for a reported $13.75 million payment and significant royalties on the sale of Restasis, a key Allergan product, the Tribe took ownership of Allergan’s Restasis patents, then licensed control back to the pharma company. In return for their significant financial compensation, the Tribe will use their sovereign immunity to defend a legal challenge in the US Patent & Trademark office on Allergan’s behalf.

This case is interesting not only for the execution of an extremely creative legal strategy, but its proximity to cultural and political issues. While ultimately the actions of the Pharma Company may be judged within the law, there is a risk of negative publicity from those who would see an attempt to game the system.

Good legal counsel will always consider the possible collateral effects of a legal strategy, particularly a novel one like this; and here the potential rewards appear to have outweighed any potential negatives. This is one case that where the legal decision and the response to it will be interesting in equal measure…