So-called data-mining companies that collect information about the drugs doctors prescribe asked an appeals court Tuesday to stop Vermont from enacting a law restricting their work.
Attorney Thomas Julin told a three-judge panel of the 2nd U.S. Circuit Court of Appeals that it would violate the First Amendment rights of the companies if the law is enacted on July 1.
He asked the appeals court to block implementation of the law until it decides whether to uphold a lower court ruling that concluded the law did not violate the Constitution.
Both sides were expected to submit written arguments in the wider appeal case within two months.
Julin, representing IMS Health Inc. (RX - news - people), Verispan LLC and Source Healthcare Analytics Inc., told the judges that information gathered by the companies is noncommercial speech protected by the First Amendment.
The companies gather electronic information on drugs ordered by doctors for their patients and sell that information to pharmaceutical companies.
In court papers, they said they also publish unique reports - "a form of specialized news reporting" - showing which doctors prescribe which medications most frequently.
The 1st U.S. Circuit Court of Appeals in Boston has already upheld the New Hampshire law, a ruling that the companies have asked the U.S. Supreme Court to review.
Automated summary from: Forbes Magazine
