In this appeal, we address whether the district court properly granted a patent-holder’s motion for judgment on the pleadings in a competitor’s antitrust suit. The district court granted the motion because it found that the Noerr-Pennington doctrine immunized Defendant-appellee Elan Corporation, PLC (“Elan”) from the maintenance of an antitrust suit based on the allegations of Plaintiff-appellant Andrx Pharmaceuticals, Inc. (“Andrx”) that Elan engaged in patent infringement proceedings to improperly protect its monopoly on the market for a controlled release naproxen medication. In addition, the district court found that Andrx’s allegations regarding a licensing agreement entered into by Elan and another competitor to settle a separate infringement suit were insufficient to support an antitrust action under the Sherman Anti-Trust Act, 15 U.S.C. §§ 1 and 2. Finally, the district court denied Andrx’s motion for leave to amend its complaint. For the reasons discussed more fully in this opinion, we conclude the district court properly construed the Noerr-Pennington doctrine to immunize Elan from liability for its infringement suits, and did not abuse its discretion in denying leave to amend. The district court erred, however, in dismissing Andrx’s claims regarding its settlement agreement with one of Andrx’s competitors. Accordingly, the district court’s order is AFFIRMED in part, REVERSED in part, and REMANDED for further proceedings.
I. BACKGROUND 1
At its core, this litigation concerns the right to manufacture and sell the drug naproxen, an analgesic medication prescribed to treat pain and other disorders. Because the complex statutory regulations which govern the manufacture and sale of drugs in the United States provide context for the facts in this case, we will begin by briefly summarizing the relevant statutory provisions, after which we will recount the relevant facts specific to the parties.
The Food and Drug Administration (“FDA”) must give its approval before any new drug can be marketed or sold in the United States. 21 U.S.C. § 355(a). Under § 355, different FDA approval standards apply depending on the drug the applicant is attempting to market.
See Valley Drug Co. v. Geneva Pharms.,
Against this background of information on drug approval procedures, we proceed to the facts relevant to the parties on appeal. Elan was the owner of U.S. Patent No. 5,637,320 (“the ’320 patent”), which granted it the exclusive right to manufacture and sell in the United States a controlled release naproxen medication. In 1998, SkyePharma, Inc. (“SkyePharma”) 3 filed an ANDA application pursuant to § 355© to manufacture and sell a generic version of Elan’s controlled release na-proxen medication. In making its application, SkyePharma certified pursuant to § 355(j) (2) (A) (vii) (IV) that its activity would not constitute patent infringement. Consequently, pursuant to § 355©(5)(B)(iii), Elan initiated patent infringement proceedings against SkyePhar-ma. According to Andrx’s complaint, Elan and SkyePharma settled the litigation by entering into an agreement in which SkyePharma admitted to infringing the ’320 patent in exchange for a license from Elan to manufacture a generic controlled release naproxen medication. Because SkyePharma was the first filing ANDA applicant, pursuant to § 355©(5)(B)(iv)(I), the license agreement effectively would have given SkyePharma an exclusive 180-day period to market a generic naproxen medication. According to Andrx’s complaint, however, SkyePhar-ma had no intention of marketing its generic drug and therefore would never trigger the running of the 180-day exclusivity period. Accordingly, the settlement agreement had the effect of preventing any generic competition in the controlled release naproxen market and constituted a conspiracy to restrain trade.
In addition to SkyePharma’s alleged attempt to seek FDA approval for a generic controlled release naproxen medication, Andrx contends that it also sought to introduce a generic naproxen to the market. After Andrx filed notice of non-infringement as required by § 355©(2)(B)(ii), however, Elan filed patent infringement proceedings against Andrx. According to Andrx’s complaint, Elan initiated this litigation “despite the absence of any reasonable belief that the claim might fairly be *1232 held to be valid upon adjudication.” Rl-3 ¶ 29, at 5. Andrx alleged that Elan could not maintain its suit because the ’320 patent had not been “validly issued because of inter alia, the SCRIP publication of June 22, 1988 which advertised its controlled release naproxen in the United States more than one year prior to the filing of the application which resulted in the ’320 patent.” Id. ¶ 27. 4 Moreover, Andrx alleged that “Elan’s goal and intention in bringing [the infringement proceedings] was solely to ... cause Andrx damage from the automatic administrative delay in the approval process” pursuant to § 355(j)(5)(B)(iii). Id. ¶29, at 5-6. In addition to these allegations, Andrx alleged that “Elan has engaged in a pattern and practice of baseless and sham litigation” against companies seeking to complete ANDAs for generic controlled release naproxen medications. Id. ¶ 26, at 5. According to Andrx, Elan sought through this behavior to preserve its monopoly over the controlled release naproxen market in the United States. Id. ¶ 39, at 7.
Based on these allegations, Andrx filed suit against Elan and SkyePharma and alleged violations of the Sherman AntiTrust Act, 15 U.S.C. §§ 1 and 2, and the Florida antitrust laws, Fla. Stat. chs. 542.18 and 542.19. Citing the Noerr-Pen-nington doctrine and precedent which allowed for the licensing settlement reached by Elan and SkyePharma, the district court granted Elan’s motion for judgment on the pleadings. In addition, the district court denied Andrx’s motion to amend its complaint on account of Andrx’s undue delay. On appeal, Andrx argues that the district court erred in dismissing with prejudice its suit against Elan because the district court misconstrued the Noerr-Pennington doctrine and its sham litigation exception. In addition, Andrx argues that the district court erred by denying its motion for leave to amend its complaint.
II. DISCUSSION
A. Judgment on the Pleadings
“We review
de novo
the district court’s ruling on a motion for judgment on the pleadings pursuant to Federal Rule of Civil Procedure 12(c).”
Horsley v. Rivera,
The Sherman Anti-Trust Act provides that “[ejvery contract ... in restraint of trade or commerce among the several States, or with foreign nations, is ... illegal.” 15 U.S.C. § 1. The Act also proscribes acts which seek “to monopolize any part of the trade or commerce among the several States, or with foreign nations.” 15 U.S.C. § 2. 5 Citing the Sherman Act and the Florida antitrust statutes, Andrx alleges that Elan improperly sought to monopolize the controlled release naproxen market and prevent competition by: (1) initiating sham patent infringement litigation against Andrx; and (2) entering into a settlement agreement with SkyePharma which granted SkyePharma exclusive licensing rights to manufacture and sell a generic controlled release naproxen medication. We will examine each set of allegations in turn.
1. Patent Infringement Proceedings
While the Sherman Anti-Trust Act does proscribe activity in restraint of trade, its reach has been tempered when its invocation would impair the exercise of constitutional rights. Recognizing that the First Amendment guarantees the right to “petition the Government for a redress of grievances,” U.S. Const, amend. I, and that this guarantee overrides the effect of a contrary federal statute,
see Marbury v. Madison,
An exception to the
Noerr-Pennington
doctrine exists, however, where the defendant engages in “sham litigation.”
Prof'l Real Estate Investors,
Based on this precedent, we agree with the district court that the
Noerr-Pennington
doctrine shields Elan from antitrust liability for filing two patent infringement suits against Andrx in relation to the manufacture and sale of controlled release naproxen. The United States Constitution expressly permits the government to grant exclusive monopolies in the form of patents,
see
U.S. Const, art. I, § 8, cl. 8, and therefore the Sherman Act cannot be read to impede a litigant from seeking to defend constitutionally-permitted patent rights.
See Prof'l Real Estate Investors,
2. Elan-Sky ePharma Settlement Agreement
In contrast, we conclude that the district court erred in finding that Andrx had not sufficiently pled an antitrust violation in relation to the licensing agreement which Elan signed with SkyePharma to terminate patent infringement litigation. Under the Federal Rules of Civil Procedure, the plaintiff is required in the complaint to make “a short and plain statement of the claim showing that the [plaintiff] is entitled to relief.” Fed. R. Civ. P. 8(a)(2). While
*1235
courts had previously applied a heightened pleading requirement in antitrust cases, this view has subsequently been rejected in favor of applying Rule 8(a)’s notice pleading standard.
Quality Foods de Centro America, S.A. v. Latin American Agribusiness Dev. Corp., S.A.,
As we noted previously, Section 1 of the Sherman Act provides that “[e]very contract ... in restraint of trade or commerce among the several States, or with foreign nations, is ... illegal.” 15 U.S.C. § 1. To prevail on a claim that a patent infringement settlement agreement violates § 1 of the Sherman Act, a plaintiff must prove “(1) the scope of the exclusionary potential of the patent; (2) the extent to which the agreements exceed that scope; and (3) the resulting anticompetitive effects” in the relevant market.
Schering-Plough Corp. v. FTC,
*1236
Section 2 of the Sherman Act outlaws conduct which seeks “to monopolize any part of the trade or commerce among the several States, or with foreign nations.” 15 U.S.C. § 2. “To state a claim for attempted monopolization, plaintiff must show specific intent on the part of the defendant to bring about a monopoly and a dangerous probability of success.”
Quality Foods de Centro America, S.A.,
In sum, then, while the allegations regarding Elan’s infringement suits against Andrx were immunized under the
Noerr-Pennington
doctrine, Andrx did sufficiently state a claim under both § 1 and § 2 of the Sherman Anti-Trust Act that Elan’s settlement agreement with SkyePharma, coupled with SkyePharma’s putative agreement not to market, violated antitrust law. Accordingly, we remand this case for further proceedings as to those allegations. Our conclusion as to the sufficiency of the complaint does not preclude, however, Andrx’s claims from being challenged at the summary judgment stage.
See Quality Foods de Centro America, S.A.,
B. Motion to Amend
We review the district court’s denial of a motion for leave to amend for clear abuse of discretion.
See Lowe’s Home Ctrs., Inc. v. Olin Corp.,
Based on the foregoing precedent and the facts of this case, we discern no abuse of discretion in the district court’s denial of Andrx’s motion for leave to amend. As the district court noted, Andrx filed its first amended complaint in March 2001, and was put on notice that its “sham litigation exception” theory was insufficient at least by March 2002. However, Andrx did not move to amend until it appeared in the district court in April 2003 to argue Elan’s motion for judgment on the pleadings.
See Smith v. Duff & Phelps, Inc.,
III. CONCLUSION
In this appeal, we were called upon to determine whether Andrx, a drug manufacturer seeking to introduce to the market a generic controlled release naproxen medication, could maintain suit against Elan, the owner of the patent for controlled release naproxen, for its initiation of patent infringement proceedings against Andrx and for its settlement agreement with SkyePharma which purportedly shielded Elan from generic competition in the naproxen market. Because the Noerr-Pennington doctrine immunized Elan from antitrust liability as to the former allegations, the district court properly found that the allegations could not state a claim for relief under antitrust law. But, because the latter allegations sufficiently pled antitrust violations, the district court erred by granting Elan’s motion for judgment on the pleadings, and therefore the case must be remanded for further proceedings in relation to the alleged antitrust violations stemming from the Elan-SkyeP-harma settlement agreement. On remand, because the district court did not clearly abuse its discretion in denying Andrx’s motion for leave to amend, the district court’s inquiry should be limited to the allegations of antitrust violations contained in Andrx’s first amended complaint. Accordingly, the district court’s grant of Elan’s motion for judgement on the pleadings is AFFIRMED in part and REVERSED in part, and REMANDED for further proceedings.
Notes
. Because this appeal arises from the district court's grant of Elan’s motion for judgment on the pleadings, the facts are derived from the allegations in Andrx's complaint, which we must accept as true, and are presented in the light most favorable to Andrx.
See Ortega v. Christian,
. As an incentive for drug manufacturers to submit ANDA applications for the production of generic drugs, § 355 grants the first manufacturer to file an ANDA application for a generic drug using the type of certification outlined in § 3 5 5(j) (2) (A) (vii) (IV) an exclusive 180-day period to market the generic drug before another ANDA application is approved for a similar generic drug. § 355(j)(5)(B)(iv)(I). This 180-day exclusivity period begins to run "after the date of the first commercial marketing of the drug.” Id.
. Although SkyePharma was also a named defendant in Andrx’s first amended complaint, Andrx settled and voluntarily dismissed its claims against SkyePharma. See R2-73 at 1.
. Patent law provides that a patent shall not be granted if the invention was "described in a printed publication in this or a foreign country or in public use or on sale in this country, more than one year prior to the date of the application for patent in the United States.” 35 U.S.C. § 102. This statutory provision is termed the "on-sale bar” to patent validity.
See Ferag AG v. Quipp Inc.,
. As the district court noted, the Florida antitrust statutes, Fla. Stat. chs. 542.18 and 542.19, closely track the language of the Sherman Act and are analyzed under the same rules and case law.
See All Care Nursing Serv. v. High Tech Staffing Servs., Inc.,
