CAFC Affirms Ruling that Patent Owner Engaged in Abusive Litigation Tactics Against IBM, SAP and JP Morgan Chase

The U.S. Court of Appeals for the Federal Circuit (CAFC) on March 1 affirmed a district court’s decision that a patent owner’s “scandalous and baseless allegations” against IBM, SAP America, Inc. (“SAP”) and JP Morgan Chase (“Chase”) warranted monetary sanctions. The CAFC decision also noted that patent infringement is not a predicate act for purposes of the Racketeer Influenced and Corrupt Organizations Act (RICO) and that “redundant, immaterial, impertinent or scandalous” matter may be stricken from the record as a lesser, alternate sanction to monetary sanctions.”

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