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Intellectual PropertyPatent LitigationThe Intellectual Property StrategistFeatures

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

By Jeff Lesovitz and Katie Schuyler
May 31, 2025

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.

Chief Judge Connolly’s Third-Party Funding Order


In April 2022, Chief Judge Colm F. Connolly of the U.S. District Court for the District of Delaware issued a standing order that applies in all his cases. The order requires all parties appearing before him to disclose third-party litigation funders who pay for a party’s attorney fees or expenses on a nonrecourse basis in exchange for a contingent financial interest in the litigation. This requirement aims to address potential attorney and party misconduct in patent cases by ensuring transparency, particularly regarding the real parties in interest.

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