Canada: Tribunal dismisses Eli Lilly’s NAFTA challenge

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

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

Cookies Settings

Canada: Tribunal dismisses Eli Lilly’s NAFTA challenge

Following the invalidation of its patents for Strattera (atomoxetine) and Zyprexa (olanzapine), Eli Lilly and Company submitted claims to international arbitration under the North American Free Trade Agreement (NAFTA). On March 1, 2017, the Tribunal issued its final award dismissing Eli Lilly's claims.

Eli Lilly's patents were invalidated on the basis of the so-called "promise of the patent" doctrine; namely, that the claims of the patent failed to deliver utility promised by statements in the specification. Eli Lilly argued that Canadian courts had dramatically changed the application of the utility requirement through a series of cases that adopted the promise doctrine and that the retroactive application of this doctrine to Eli Lilly's patents resulted in a breach of Canada's obligations under NAFTA.

The Tribunal, however, found that Canada's utility requirement underwent incremental and evolutionary changes between the grant of the patents and their subsequent invalidation. Moreover, it found that the promise standard has a "strong foundation" in earlier jurisprudence of the Supreme Court of Canada. Further, the Tribunal found that the doctrine was neither arbitrary nor discriminatory. In summary, the government of Canada was not found to have violated its obligations under NAFTA.

The NAFTA decision further supports the application of the heightened utility requirement that may arise under Canadian law through application of the promise doctrine. Those interested in the issue, however, eagerly await a decision from the Supreme Court of Canada in the case of AstraZeneca Canada Inc v Apotex Inc. In that case, which was heard in November 2016, the promise doctrine was directly before the Supreme Court. A decision, which may bring some clarity on the issue, is expected soon.

Neil Padgett

Smart & Biggar/ Fetherstonhaugh

55 Metcalfe Street Suite 900

PO Box 2999 Station D

Ottawa ON  K1P 5Y6

Tel: 613 232 2486

Fax: 613 232 8440 

ottawa@smart-biggar.ca

www.smart-biggar.ca

more from across site and SHARED ros bottom lb

More from across our site

Anita Polott, who is celebrating three decades at Morgan Lewis this year, reflects on career progression, stepping into unfamiliar territory, and leadership frameworks
Technical excellence remains essential, but many firms are discovering that packaging IP with complementary practice areas can unlock new clients and a stronger competitive position
As international interest in Southeast Asia grows, Sheng Rong Tng discusses how changing client demands and the firm’s multidisciplinary model are helping it compete for complex regional mandates
Todd Hopfinger, director in Sterne Kessler’s electronics practice group, says IP owners are contemplating how patent rights will be enforced as commercial activity expands beyond Earth
Christopher Stothers' arrival strengthens the firm's life sciences, technology and UPC offering as competition for top European litigators intensifies
Armstrong Teasdale’s Jim Heinen Jr discusses the challenge of balancing billables, business development and family life and explains why not all patent lawyers are science nerds
From cross-border jurisdiction to the end of the transitional period, Powell Gilbert’s Ioana Sabau and Bryce Matthewson predict the biggest talking points ahead
A wave of office launches and lateral hires reflects the draw of patent disputes, but booming AI, semiconductor and data centre markets are offering an even bigger IP opportunity
The hire of Frederick Nicolle as a partner continues Pinsent Masons' expansion while reducing Simmons’ patent prosecution offering in London to zero
The expansion into Granada forms part of a national ‘decentralisation’ strategy focused on providing proximity to research and tech businesses away from traditional hubs
Gift this article