WASHINGTON – The U.S. Supreme Court gave something to both sides this week in a closely watched dispute over so-called "pay to delay" agreements between brand-name and generic drug manufacturers that put off the production of generics in return for payments by brand-name patent holders.

By a 5-3 vote, the court in Federal Trade Commission v. Actavis, 12-416, held that such deals are not presumptively illegal under antitrust laws, but it said the government should be able to make a case that individual settlements are anti-competitive, under a "rule of reason" standard.