The Federal Circuit vacated and remanded the district court's entry of summary judgment both for plaintiff Global Tubing LLC on its inequitable conduct claim and for defendants Tenaris Coiled Tubes LLC and Tenaris S.A. on Global Tubing's Walker Process fraud claim. The dispute centered on Tenaris's U.S. Patent Nos. 9,803,256, 10,378,074, and 10,378,075, covering quenched-and-tempered coiled tubing with specified carbon ranges (0.17-0.35 wt.% in the '256 patent). The district court had found clear and convincing evidence of inequitable conduct based on Tenaris's failure to disclose internal "CYMAX Documents" to the PTO during prosecution, which revealed that a prior product called CYMAX 100 had a carbon range (0.13-0.17 wt.%) overlapping with the claimed invention at 0.17 wt.%. The court relied heavily on inventor Dr. Valdez's comment to prosecution counsel—"I am not sure it is a good idea to disclose this document"—as direct evidence of deceptive intent. The Federal Circuit held that genuine disputes of material fact precluded summary judgment on both the intent-to-deceive and materiality elements of inequitable conduct, and likewise on whether Tenaris possessed the market power necessary to establish a dangerous probability of monopolization under Walker Process.
The decision underscores the difficulty of establishing inequitable conduct on summary judgment even where seemingly damning evidence exists. Dr. Valdez's deposition testimony provided plausible non-deceptive explanations for his hesitation: he believed CYMAX was a "different product" with different properties that would only confuse the examiner, and he understood the previously-submitted Chitwood reference to disclose the same substantive information as the CYMAX Documents (indeed describing Chitwood as "broader than CYMAX"). The panel's resolution turns on whether these explanations create genuine factual disputes about subjective intent—a question that implicates the heightened clear-and-convincing-evidence standard and the caution against inferring bad faith from ambiguous conduct. The ruling also addresses materiality's but-for test and whether overlapping prior art at a single compositional point (0.17 wt.% carbon) would have precluded allowance, a question the court found unsuitable for summary adjudication given disputes about the scope of what Chitwood disclosed and whether the examiner would have found the CYMAX Documents' more specific disclosure outcome-determinative.