Significance of Due Diligence for Patent Practitioners and the US/China Financial Warfare

by Dennis Crouch

37 C.F.R. § 11.18(b) imposes essential duties on patent candidates, attorneys, and brokers. Paperwork submitted to the USPTO implicitly certify that:

1. Statements made are true or are are believed to be true (primarily based upon info and perception) and don’t embrace any try to hide a cloth reality; and
2. {That a} cheap inquiry was performed to verify that: (i) statements haven’t any improper functions, (ii) authorized contentions are supported by present legislation or legitimate arguments for change, (iii) allegations and factual contentions have or are more likely to have evidentiary help, and (iv) denials of factual contentions are primarily based on proof or an affordable ignorance or perception.

Latest USPTO disciplinary circumstances underscore the seriousness of those obligations. Examples embrace submitting a micro entity standing request with out correct investigation and submitting an info disclosure assertion (IDS) by a non-practitioner with out practitioner overview. Rubber stamping just isn’t permitted.

The PTO Simply launched a closing order in a case towards Jinggao Li, operator of the Dragon Solar Regulation Agency.  In re Li, D2023-19 (PTO Order).  Li acquired a public reprimand for counting on international counsel’s steerage on micro entity standing, leading to unwarranted standing in 19 of 27 circumstances.  Equally, in In re Wu, D2023-24 (PTO Order), US patent agent Qianqian Wu was reprimanded for submitting 20+ functions with micro entity standing, regardless of the income-level qualification permitting solely 4 functions.  She additionally reported relying upon shopper’s statements concerning their qualification for micro entity standing.  Comparable latest circumstances embrace In re Tung-Yun McNally, D2023-22 (PTO Order); and In re Chew, D2023-08 (PTO Order).

It’s value noting that these circumstances contain practitioners whose names with Chinese language origins and Chinese language entities as purchasers. In a latest dialog with Dir. Vidal, she acknowledged her position as Undersecretary of Commerce focuses on the financial battle between the US and China, however assured that her position as PTO director doesn’t contain discrimination towards China-originated innovation. She defined that the company didn’t goal Chinese language fraudulent exercise, however acknowledged that a lot of the present fraud and blatant misconduct earlier than the PTO originates from China.

As a practitioner, ask your self: Are you conducting inquiries, cheap below the circumstances, to validate the data you current?

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11.18 Signature and certificates for correspondence filed within the Workplace.

(a) For all paperwork filed within the Workplace in patent, trademark, and different non-patent issues, and all paperwork filed with a listening to officer in a disciplinary continuing, apart from correspondence that’s required to be signed by the applicant or get together, each bit of correspondence filed by a practitioner within the Workplace should bear a signature, personally signed or inserted by such practitioner, in compliance with § 1.4(d) or § 2.193(a) of this chapter.

(b) By presenting to the Workplace or listening to officer in a disciplinary continuing (whether or not by signing, submitting, submitting, or later advocating) any paper, the get together presenting such paper, whether or not a practitioner or non-practitioner, is certifying that –

1. All statements made therein of the get together’s personal data are true, all statements made therein on info and perception are believed to be true, and all statements made therein are made with the data that whoever, in any matter throughout the jurisdiction of the Workplace, knowingly and willfully falsifies, conceals, or covers up by any trick, scheme, or gadget a cloth reality, or knowingly and willfully makes any false, fictitious, or fraudulent statements or representations, or knowingly and willfully makes or makes use of any false writing or doc understanding the identical to comprise any false, fictitious, or fraudulent assertion or entry, shall be topic to the penalties set forth below 18 U.S.C. 1001 and some other relevant felony statute, and violations of the provisions of this part might jeopardize the probative worth of the paper; and
2. To one of the best of the get together’s data, info and perception, fashioned after an inquiry cheap below the circumstances,
   • i. The paper just isn’t being offered for any improper function, equivalent to to harass somebody or to trigger pointless delay or useless improve in the price of any continuing earlier than the Workplace;
   • ii. The opposite authorized contentions therein are warranted by present legislation or by a nonfrivolous argument for the extension, modification, or reversal of present legislation or the institution of recent legislation;
   • iii. The allegations and different factual contentions have evidentiary help or, if particularly so recognized, are more likely to have evidentiary help after an affordable alternative for additional investigation or discovery; and
   • iv. The denials of factual contentions are warranted on the proof, or if particularly so recognized, are fairly primarily based on a ignorance or perception.

(c) Violations of any of paragraphs (b)(2)(i) via (iv) of this part are, after discover and cheap alternative to reply, topic to such sanctions or actions as deemed acceptable by the USPTO Director, which can embrace, however should not restricted to, any mixture of –

1. Putting the offending paper;
2. Referring a practitioner’s conduct to the Director of the Workplace of Enrollment and Self-discipline for acceptable motion;
3. Precluding a celebration or practitioner from submitting a paper, or presenting or contesting a problem;
4. Affecting the load given to the offending paper; or
5. Terminating the proceedings within the Workplace.

(d) Any practitioner violating the provisions of this part may be topic to disciplinary motion.