Patent Policing: Federal Circuit Upholds District Courts’ Inherent Authority to Sanction Party Conduct

In recent decisions, the Federal Circuit affirmed the inherent powers of district courts to investigate and address potential party misconduct in patent litigations, including suspected fraud and bad faith conduct. In addition, the Federal Circuit held that parties suspected of fraudulent or bad faith conduct cannot evade the district court’s investigation or misconduct sanctions by voluntarily dismissing their suits. This article delves into these key cases that upheld district courts’ policing by standing orders or sanctions and underscore the importance of transparency and proper conduct in patent litigation.