The OilSpot News from DTN Energy
Monday, May 19, 2003 VOLUME 1 ISSUE 44  


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FTC’s Case Against Unocal to Start November 13
Gasoline Patent to Endure Yet Another Challenge

The Federal Trade Commission’s complaint of monopoly charges against Unocal will begin November 13, said company spokesman Barry Lane. The case will begin at the commission’s administrative court, with the FTC bringing another suit in a series of legal challenges alleging Unocal unfairly acquired monopoly control over California’s summertime gasoline formula.

 

Unocal has the patent for the reformulated gasoline adopted by California officials to meet the state’s stringent environmental standards for summer gasoline.

 

In early March, the FTC accepted a complaint that Unocal acquired monopoly power in the technology market for producing Phase 2 "summer-time" CARB gasoline by misrepresenting, among other things, that certain information was non-proprietary and in the public domain, while at the same time pursuing a patent that would enable it to charge substantial royalties if the information were used by California.

 

The FTC complaint further contends that during the rulemaking before the California Air Resources Board, Unocal misled industry groups that were participating in the process with regard to its proprietary interests, and that its conduct has resulted in anticompetitive effects in the downstream market for RFG in California.

 

The complaint is seeking an order that would require Unocal to cease all efforts it has undertaken to claim infringement or otherwise enforce its RFG patents against companies manufacturing, selling, distributing, or otherwise using motor gasoline to be sold in California.

 

The trial is expected to last about three to four weeks.


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