OpenSky ‘Abuse’ Sanctions Add New Weapons in Patent Challenges

A landmark sanctions decision from the US Patent and Trademark Office director in a high-profile patent review gives the agency and attorneys new avenues to combat abuse of its procedures, even as it leaves open questions about whether the precedent does enough to discourage future patent challengers from seeking a “windfall.”

Director Kathi Vidal’s Oct. 4 decision—which found that OpenSky Industries LLC abused the “inter partes review” process in a challenge against a VLSI Technology LLC patent—was the first time a PTO director levied sanctions in a patent review.

Though the case deals with egregious facts that aren’t likely to ...