Should False Marking Claims be Stayed Pending a Decision in Stauffer? Depends on the Court

Defendant's motion to stay plaintiff's qui tam false marking case pending the Federal Circuit's resolution of Stauffer v. Brooks Brothers, Inc., Nos. 2009-1428, 2009-1430, 2009-1453, was denied. "[Plaintiff's] standing to bring a qui tam action under the FCA does not appear to be in serious dispute. . . . The Court finds that the plain language of the FCA provides for qui tam actions whether or not the qui tam plaintiff has personally sustained an injury-in-fact. . . . Plaintiff has alleged that the injuries prohibited by the FCA have occurred and it is unclear why their status as a non-competitor would affect their qui tam standing."

Patent Compliance Group Inc v. North States Industries Inc., 3-10-cv-00405 (TXND August 27, 2010, Order) (Furgeson, J.).

Defendants' motion to stay pending the Federal Circuit's resolution of Stauffer v. Brooks Brothers, Inc., Nos. 2009-1428, 2009-1430, 2b09-1453, was granted. "It is undisputed that the precise issue that is now before this Court - whether a private party has Article III standing to bring a false marking claim under § 292 of the Patent Act when that private party has suffered no injury - is now before the Federal Circuit in Stauffer. . . . [Plaintiff] has failed to articulate any prejudice that it will suffer if the case is stayed. Significantly, [plaintiff] does not allege any injury to itself or any other entity resulting from Defendants' conduct."

Accord Patents, LLC v. Gravity Defyer Corporation et al., 1-10-cv-00642 (GAND August 27, 2010, Order) (Batten, J.)