NAFTA’s arbitration tribunal has issued a decision in favour of the Government of Canada in response to a challenge against it by Eli Lilly and Company under the dispute settlement provisions of NAFTA Chapter 11. Eli Lilly had alleged that the interpretation of the term “useful” in Canada’s Patent Act by the Canadian courts in invalidating Eli Lilly’s Zyprexa and Strattera patents violated Canada’s obligations under NAFTA on the basis that such interpretation was arbitrary and discriminatory. The tribunal agreed with Canada’s position that Eli Lilly’s claims could not form the basis for a challenge under NAFTA Chapter 11 and in any event were without merit.

Read the NAFTA Arbitration Tribunal’s decision in full.