VLI said the loss of a critical...

VLI said the loss of a critical patent covering features of its Today brand contraceptive sponge could jeopardize its merger with American Home Products. The Irvine-based personal products company said the merger was contingent on renewal of the patent, which lapsed in July when VLI failed to pay a required fee on time. The federal Patent and Trademark Office has rejected the company’s first petition for reinstatement of the patent. But VLI Chairman Robert A. Elliott said a second petition will be filed and could be acted on within two weeks.