We therefore conclude that the line of analysis that the Commission employed in reaching its conclusion that Philips’s package licensing agreements are more anticompetitive than procompetitive, and thus are unlawful under the rule of reason, was predicated on legal errors and on factual findings that were not supported by substantial evidence. For these reasons, we cannot uphold the Commission’s decision that Philips’s patents are unenforceable because of patent misuse under the rule of reason.
Because the Commission did not address all of the issues presented by the administrative law judge’s decision under both the per se and rule of reason analysis, further proceedings before the Commission may be necessary with respect to whether Philips’s patents are enforceable and, if so, whether Philips is entitled to any relief from the Commission. Accordingly, we reverse the Commission’s ruling on patent misuse for the reasons stated, and we remand this case to the Commission for further proceedings consistent with this opinion.
Download PDF