Court Dismisses Sham Litigation Claim, Permits Walker Process Claim to Proceed

In response to a patent enforcement suit by SanDisk, ST Microelectronic’s filed an antitrust counter-claim arguing that SanDisk’s enforcement action was a sham and that it had obtained its patent fraudulently.  The court dismissed the sham litigation counterclaim on the ground that SanDisk’s claim was not objectively groundless.  It found sufficient allegations of fraud on the patent office, however, to permit the Walker Process claim to proceed.  Such a claim requires evidence of intentional fraud, a standard that a jury will evaluate.

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