The Federal Circuit upheld a district court's decision to impose sanctions on PS Products Inc. and its attorney for filing a frivolous patent infringement suit against Panther Trading Co. PSP, claiming infringement of a stun device patent, faced sanctions due to the meritless nature of their claims and improper venue. The court granted Panther's motion for attorney fees, totaling $43,344.88, and an additional $25,000 in deterrence sanctions. The Circuit confirmed that district courts retain inherent authority to sanction bad faith conduct, underscoring the importance of maintaining judicial integrity.
The Federal Circuit affirmed that district courts have inherent authority to impose deterrence sanctions for bad faith conduct after awarding attorney fees and costs.
PSP's conduct, deemed to be in bad faith, led to a $25,000 sanction imposed by the district court on the grounds of filing meritless lawsuits.
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