IP UPDATE

Muddy paws? Franchisor’s unclean hands precludes full equitable relief

by Jolie B. Schenerman | Apr 2, 2026 | Trade Secrets, Trademarks

The US Court of Appeals for the Sixth Circuit affirmed a district court’s partial denial of a franchisor’s request for a preliminary injunction, finding that the franchisor’s inequitable conduct barred broader injunctive relief, even where the franchisor showed a likelihood of success on certain claims. Fetch! Pet Care, Inc. v. Atomic Pawz Inc., Case No. 25-1638 (6th Cir. Mar. 20, 2026) (Gibbons, Larsen, Murphy, JJ.)

Fetch! sued several former franchisee locations for breach of contract, trademark infringement, and trade secret misappropriation after the franchisees stopped paying royalties, downloaded client contact information, prepared transition plans, and continued operating competing businesses following termination of system access. Fetch! sought a temporary restraining order and then a preliminary injunction to bar operation of the competing businesses, use of alleged trade secrets, infringement of its registered trademarks, and interference with its business relationships.

The district court granted limited relief prohibiting use of Fetch!’s trademarks and restricting communications with existing Fetch! franchisees but declined to enjoin the defendants from continuing to operate competing businesses. The court concluded that although Fetch! was likely to succeed on certain claims, equitable relief was limited by Fetch!’s own conduct, including evidence that it aggressively marketed and sold its “2.0” franchise model while obscuring material differences from its legacy “1.0” model, and that it cut off certain franchisees’ system access under disputed circumstances. Fetch! appealed.

The Sixth Circuit emphasized that a preliminary injunction is an extraordinary equitable remedy and that equitable doctrines, including unclean hands, may independently bar relief. The Court agreed that the record supported a finding that Fetch!’s conduct in marketing and selling its 2.0 and managed-services franchises (particularly Fetch!’s removal of distinctions in disclosure materials and aggressive profitability representations) could constitute bad faith sufficient to deny broader injunctive relief.

The Sixth Circuit also addressed the three legacy 1.0 franchisees for which the district court had not applied unclean hands. Affirming on an alternative ground, the Court found that unclean hands likewise barred injunctive relief as to those defendants. The Court relied on evidence that Fetch! terminated or restricted their system access while they were current on payments and before they began operating competing businesses, and that Fetch! may have failed to comply with applicable state franchise law requirements governing notice and opportunity to cure.

Although it affirmed on unclean hands, the Sixth Circuit clarified aspects of its preliminary injunction jurisprudence:

It rejected the district court’s suggestion that a heightened showing of irreparable harm applies when claims are subject to arbitration, confirming that the traditional four-factor test governs.
It found that the district court erred in applying a clear-and-convincing standard for irreparable harm rather than the federal standard requiring a likelihood of irreparable injury.
It explained that competitive harms, such as loss of goodwill and customer relationships, can qualify as irreparable precisely because they are difficult to quantify.

Because Fetch!’s inequitable conduct supported denial of broader relief, the Sixth Circuit affirmed the district court’s refusal to enjoin the defendants’ competing operations while leaving in place the narrower [...]

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Ticket to ride: USPTO requires counsel for foreign patent applicants

by Lauren Hong | Apr 2, 2026 | Patents

The United States Patent and Trademark Office (USPTO) adopted a final rule requiring foreign-domiciled patent applicants and patent owners to be represented by a registered US patent practitioner, signaling a meaningful procedural shift aimed at harmonization, efficiency, compliance, and fraud prevention. 91 Fed. Reg. 13510 (Mar. 20, 2026).

The USPTO explained that the rule is intended primarily to address recurring compliance and fraud concerns, such as false or improper certifications, including micro entity certifications, and other filings that misrepresent eligibility for fee reductions or expedited treatment. Because registered US practitioners are subject to the USPTO’s Rules of Professional Conduct and disciplinary authority, the agency views mandatory representation as a more reliable accountability mechanism.

The USPTO also cited practical administrative considerations, indicating that foreign pro se filings are more likely to be procedurally deficient and therefore consume disproportionate examination and processing resources, particularly when application papers are not in condition for publication or examination upon receipt.

The final rule clarifies how the requirement will operate in practice. While a foreign domiciled applicant may still obtain a filing date without a practitioner’s signature, any subsequent papers will not be entered unless signed by a registered US patent practitioner. This includes application data sheets, micro entity certifications, petitions, amendments, and other key prosecution documents. In some circumstances, the consequences for noncompliance may be significant. For example, if an unsigned application data sheet is treated merely as a transmittal letter, inventorship, priority, or benefit claims may not be properly established at filing, necessitating corrective petitions and additional cost. Likewise, requests that must be made at filing, such as nonpublication or prioritized examination requests, may be forfeited if not properly signed.

The USPTO emphasized that the rule is procedural rather than substantive. It does not alter the standards of patentability or the requirements for securing a filing date. The rule applies to all filings received on or after its effective date, regardless of the application’s effective filing date. The USPTO also noted that an applicant that believes it has been incorrectly designated as foreign domiciled may respond to that determination even before retaining counsel, although conclusory or unsupported assertions are unlikely to succeed.

Practice note: Foreign applicants and patent owners should now assume that US practitioner involvement is essential to preserve rights and avoid preventable procedural defects.

Code, copies, and consequences: $185 million verdict uninstalled!

by Jodi Benassi | Mar 26, 2026 | Patents

Addressing patent eligibility, infringement, willfulness, enhanced damages, and the limits of patent damages tied to foreign software sales, the US Court of Appeals for the Federal Circuit vacated a $185 million jury award after finding that damages based on foreign sales were improperly included because the accused software copies were made and installed abroad. Trs. of Columbia Univ. v. Gen Digital Inc., Case No. 24-1243 (Fed. Cir. Mar. 11, 2026) (Dyk, Prost, Reyna, JJ.)

The Trustees of Columbia University sued Gen Digital, the Norton software brand marketer, for infringement of patents directed to detecting anomalous program execution in antivirus software. A jury found willful infringement and awarded approximately $185 million in damages, including more than $94 million attributable to foreign sales of Norton software products based on findings that the infringing product sold to foreign customers was made in and distributed from the United States. The district court denied Gen Digital’s post-trial motions, enhanced the damages, and awarded attorneys’ fees. Gen Digital appealed.

Patent eligibility: Abstract at Alice step one

The Federal Circuit determined that the asserted claims are directed to an abstract idea at step one of the Alice framework. The Court explained that the claims, at their core, involve comparing data (function calls) to a model – created using multiple computers – to identify anomalous behavior, which is a long-standing abstract concept in the context of virus detection. Although Columbia argued that the claims improved computer functionality through efficiency gains and the use of distributed models, the Court found that those purported improvements were either themselves abstract or not required by the claim language. The Court agreed with Columbia that factual disputes remain as to whether certain claimed features – particularly the “model of function calls” – were well-understood, routine, and conventional, precluding resolution of step two of the Alice framework. The Court remanded for further proceedings to perform an Alice step two analysis.

Willfulness: Affirmed by substantial evidence

The Federal Circuit found that substantial evidence supported a finding that Gen Digital knew or should have known of the asserted patents, including evidence that its personnel were aware of the underlying technology and related patent applications prior to issuance. The Court rejected Gen Digital’s argument that its litigation defenses precluded willfulness, explaining that post hoc reasonable defenses do not negate willfulness absent evidence that the defendant relied on those defenses at the time of the accused conduct. Because the record supported a finding that Gen Digital failed to adequately investigate potential infringement despite being aware of the patents, the Federal Circuit found no basis to disturb the district court jury’s willfulness determination.

No domestic infringement for foreign-made software copies

The Federal Circuit reiterated the general rule that US patent law does not apply to products made and sold abroad. Although the jury was instructed that damages could include foreign sales if the infringing product was “made in or distributed from the United States,” the Court found this instruction legally incorrect. The Court further explained that 35 U.S.C. § [...]

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Virtually displayed: USPTO updates guidance for computer-generated interfaces and icons

by Taylor MacDonald | Mar 26, 2026 | Patents

To address evolving digital technologies, the United States Patent and Trademark Office (USPTO) issued supplemental guidance for examining design patent applications directed to computer-generated interfaces and icons. The guidance expands flexibility for applicants – particularly in projection, hologram, and virtual and augmented reality (PHVAR) contexts – while maintaining the statutory requirement that claimed designs be tied to an article of manufacture.

The USPTO first sought public input in 2020 on how the “article of manufacture” requirement under 35 U.S.C. § 171 should apply to emerging digital designs. Although many commenters urged recognition of PHVAR designs, subsequent guidance issued by the USPTO in 2023 did not fully address those technologies. The latest supplemental guidance responds to continued stakeholder feedback, particularly regarding the limitations imposed by prior drawing requirements.

Traditionally, applicants seeking protection for computer-generated icons or graphical user interfaces (GUIs) were required to depict a physical article of manufacture, such as a display screen, in solid or broken lines in the drawings. This requirement ensured that the claimed design was not merely a “transient or disembodied” image but was instead tied to a statutory article of manufacture.

The updated guidance removes the requirement that drawings depict a display panel or other physical article, provided that the title and claim clearly identify the relevant article of manufacture (e.g., a computer, computer display, or computer system). In such cases, the article need not appear in the drawings, so long as the application, taken as a whole, makes it clear that the claimed design is “for” an article of manufacture and not merely an abstract or disembodied image. For example, phrases such as “interface for a computer system” or “icon for a display panel” are sufficient to establish that the design is tied to a qualifying article.

The USPTO reiterated that the guidance “does not constitute substantive rulemaking and hence does not have the force and effect of law.” Examiners will continue to evaluate applications under all applicable patentability provisions, including §§ 102, 103, and 112.

Overall, the updated guidance provides applicants with greater flexibility in claiming and depicting computer-generated designs while reaffirming that such designs must remain tied to a qualifying article of manufacture.

Absent a client waiver, attorney-client relationship survives conflict

by Connor M. Larson | Mar 26, 2026 | Patents

Reversing a district court order requiring the disclosure of attorney-client communications and holding a law firm in civil contempt, the US Court of Appeals for the Federal Circuit ruled that an attorney’s conflict of interest does not automatically terminate the attorney-client privilege and that an invalid order could not support civil contempt. Trs. of Columbia Univ. in City of New York v. Gen Digital Inc., Case No. 24-1243, (Fed. Cir. Mar. 11, 2026) (Dyk, Prost, Reyna, JJ.)

The Trustees of Columbia University sued Gen Digital, the Norton software brand marketer, for infringement of two patents and to correct the inventorship of one of the patents. Norton owned the patent on which inventorship correction was sought, and a Norton employee, Dr. Dacier, was listed as the sole inventor. Columbia alleged that two Columbia professors invented the subject matter.

On the inventorship issue, Norton and Dr. Dacier were both represented by Quinn Emanuel Urquhart & Sullivan. Dr. Dacier was deposed and testified about the development of the invention, including activities involving the Columbia professors. Dr. Dacier did not attribute any inventive contributions to the Columbia professors, but Columbia argued – and the district court agreed – that his testimony supported Columbia’s inventorship theory.

Before the district court, Columbia argued that this representation created an improper conflict of interest, particularly because Dr. Dacier had allegedly expressed views critical of Norton’s litigation positions. In Columbia’s view, Quinn Emanuel had improperly prevented Dr. Dacier from testifying at trial in support of Columbia’s inventorship claims. The district court agreed, finding that Quinn Emanuel’s representation of Dr. Dacier raised a conflict, and ruled that Quinn Emanuel’s current representation of Norton automatically terminated its representation of Dr. Dacier. The district court ordered Quinn Emanuel to release its communications with Dr. Dacier. Quinn Emanuel had previously asserted a claim of privilege over these communications. Quinn Emanuel refused the production order, and the district court found Quinn Emanuel in civil contempt. As a sanction, the district court imposed a negative evidentiary inference that Dr. Dacier would have testified to improper conduct by Quinn Emanuel – supporting Columbia’s motion for enhanced damages and attorneys’ fees in a companion case. Quinn Emanuel appealed.

On appeal, Quinn Emanuel argued that the district court’s order requiring the disclosure of communications with Dr. Dacier was invalid because it improperly compelled production of privileged communications and that the contempt finding should be reversed. Columbia argued that the disclosure order was proper because Norton did not raise the privilege issue response to Columbia’s motion for an order to show cause, Quinn Emanuel failed to request in camera review, Quinn Emanuel did not contact Dr. Dacier to determine if he wanted to assert privilege, and Dr. Dacier waived the privilege by emailing both Columbia’s counsel and Quinn Emanuel disclosing that he had been in contact with Columbia’s counsel.

The Federal Circuit rejected all four arguments, holding that there was “no question that Dr. Dacier retained Quinn [Emanuel] to represent him and that he did not terminate the relationship [...]

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