Inequitable Conduct Does Not Exist Where Standard PTO Form Was Used

Network Signatures, Inc. v. State Farm Mut. Auto. Ins. Co.

The U.S. Court of Appeals for the Federal Circuit reversed a summary judgment holding of the district court on the issue of whether payment of late issue fees, using standard Patent Trademark Office (PTO) procedures, without stating the reasons for the late payment amounts to inequitable conduct. Network Signatures, Inc. v. State Farm Mut. Auto. Ins. Co., Case Nos. 12-1492 (Fed. Cir., Sept. 24, 2013) (Newman, J.) (Clevenger, J., dissenting).

The patent in issue was owned and maintained by the Naval Research Laboratory (NRL). Accordingly to NRL internal procedures, the patent was permitted to lapse, by nonpayment of maintenance fees, because there was no commercial interest in it.