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ARTICLE · 01 NOVEMBER 2016

Default Sanction For Discovery Violations Was Abuse Of Discretion

Drone is a Taiwanese corporation and the assignee of the two asserted patents, which are generally directed to systems for remotely controlled machines.

United StatesIntellectual Property

Highlighting the significance of procedure, discovery disputes and the limits of judicial discretion, the US Court of Appeals for the Federal Circuit affirmed the district court’s denial of a motion to dismiss for lack of standing and vacated several orders for abuse its discretion. Drone Techs., Inc. v. Parrot S.A., Parrot, Inc., Case Nos. 15-1892; -1955 (Fed. Cir., Sept. 29, 2016) (Schall, J) (Newman, J, concurring).  

Drone is a Taiwanese corporation and the assignee of the two asserted patents, which are generally directed to systems for remotely controlled machines. Parrot designs, develops and markets hobby aircrafts, i.e., “drones,” and offers them for sale in the United States. Drone sued Parrot in 2014 alleging indirect infringement. Parrot answered and asserted counterclaims and affirmative defenses. As a sanction for violating two discovery orders, however, the district court struck Parrot’s counterclaims and defenses, which resulted in a default judgment

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