Direct Purchasers' Standing to Sue for Walker Process Fraud

The United States Court of Appeals for the Second Circuit recently held that direct purchasers have standing to assert claims of Walker Process fraud, at least when a patent has already been found to be unenforceable due to inequitable conduct.

Apparently wary of expanding the universe of potential patent challengers, the court was careful to limit its holding to the factual scenario before it—one where the plaintiffs challenged an "already tarnished patent." Because the decision is narrowly crafted, it seems unlikely to cause an explosion in Walker Process challenges by purchasers, absent further expansions by other courts in standing to bring Walker Process claims.

Licensees, however, have one more reason to be proactive when potential issues arise regarding the validity of a patent that they have licensed. Read more…

_{AIPLA Antitrust News, newsletter of the AIPLA Antitrust Committee (January 2010)}