Federal Circuit Upholds $25K Sanction for Frivolous Stun Device Patent Suit

The Federal Circuit upheld a $25,000 sanction against PS Products (PSP) for filing a “nuisance” patent infringement lawsuit against Panther Trading Co. The panel affirmed a lower court’s decision, stating that the accused product was “plainly dissimilar” to PSP’s design patent for a stun device electrode, making the lawsuit frivolous.

PSP had initially sued Panther for design patent infringement but later dropped the case. Panther sought attorney fees and $100,000 in sanctions to deter similar meritless lawsuits. The district court awarded $43,000 in fees and costs, plus $25,000 in sanctions to discourage PSP from filing such cases in the future. PSP appealed the sanctions, arguing they were excessive, but the Federal Circuit confirmed the district court’s authority to impose both attorney fees and sanctions.

Panther’s attorney welcomed the decision as a precedent to deter frivolous patent suits aimed at extracting settlements. The ruling establishes clearer support for courts imposing sanctions alongside attorney fee awards.