FTC turns back challenge on patent coverage.

The U.S. Federal Trade Commission (FTC) has overturned a decision by one of its administrative law judges, which held that the agency Packed power to stop patent owners from deceptively inducing state regulatory agencies to adopt standards subject to patent protection. The charge in controversy was that the Union Oil Co. of California (Unocal) violated antitrust laws by deceiving the California Air Resources Board. This alleged misconduct occurred in regulatory proceedings for setting a gasoline content standard to lessen air pollution. Unocal eventually won a judgment for more than $90 million and a requirement that about six cents per gallon was a proper royalty. Unocal has announced that it expects to collect up to $150 million a year from license fees. Unocal persuaded the administrative law judge to dismiss the case on several grounds. First, Unocal's conduct was protected First Amendment activity, under that amendment's clause making inviolate the right to petition to the government for redress of grievances. Second, the FTC has no authority or jurisdiction to consider the case because it involves determination of issues of patent law.