SAN FRANCISCO — Finnegan Henderson and other law firms with large patent prosecution practices, can breathe a sigh of relief.

Ruling in a case with high stakes for the profession, the Massachusetts Supreme Judicial Court held Dec. 23 that it is not an inherent conflict of interest for a law firm to simultaneously represent business competitors pursuing patents for similar inventions.

Although the situation “may present a number of potential legal, ethical, and practical problems for lawyers and their clients,” it does not violate the state's rules on professional conduct, the court held, or require a conflict waiver.