VDPP appealed to the Federal Circuit in April 2024. The company argues that its prior settlement agreements should not be treated as "licenses" triggering §287(a) marking duties because they contained explicit denials of infringement. Volkswagen has urged the appellate panel to affirm the dismissal and has accused VDPP of conducting inadequate investigation and taking unreasonable litigation positions. Oral arguments took place on April 9, 2026. The three-judge panel—Chief Judge Kimberly A. Moore, Judge Alan D. Lourie, and Judge Alison H. Cunningham—questioned VDPP's counsel extensively on the marking requirement, the sanctions award, and whether the appeal should proceed at all. The panel's line of questioning suggested skepticism toward VDPP's position.
The case presents a novel question: whether denial-of-infringement language in settlement agreements can eliminate §287(a) marking obligations for non-practicing entities. A Federal Circuit ruling could reshape how companies draft settlement agreements, structure licensing deals, and calculate pre-suit damages exposure. The panel has signaled interest in establishing a bright-line rule on the issue, which comes as courts and Congress have increased scrutiny of NPE litigation tactics. A decision is pending.