Reformed doctrine of Inequitable Conduct
On August 4, the Federal Circuit decided Exergen Corp v. Wal-Mart Stores, Inc. In this case, the Federal Circuit restrains the use of the inequitable conduct doctrine. Under FRCP 9(b) a claim must be pled with particularity, and this applies to the inequitable conduct defense. (The Federal Circuit first endorsed this proposition in Central Admixture v. Adv. Cardia Solutions, 482 F.3d 1347 (Fed Cir 2007)). The Court’s ruling on this issue in Exergen states that “A pleading that simply avers the substantive elements of inequitable conduct, without setting forth the particularized factual bases for the allegation, does not satisfy Rule 9(b)” Exergen at 21. The Court went on to say that the identification of who, what when, where and how the material was misrepresented must be identified before the USPTO. Furthermore, the Court stated that requisite intent must be shown or inferred through the underlying facts of the allegation. Id at 22. The requisite state of mind must be shown through an “individual [who] (1) knew of the withheld information or of the falsity of the material misrepresentation, and (2) withheld or misrepresented this information with a specific intent to deceive the PTO.” Id at 24-25.
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