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Press Release

U.S. Patent and Trademark Office Employee Agrees to Pay $500,000 to Resolve Conflict-of-Interest Allegations

Wednesday, February 25, 2026

Share For Immediate Release Office of Public Affairs Daxin Wu, a Patent Examiner for the U.S. Patent and Trademark Office (USPTO), has agreed to pay $500,000 to resolve allegations that she violated conflict-of-interest rules during the course of her employment with the USPTO.

Among other things, the Ethics Reform Act of 1989 prohibits executive branch employees from participating personally and substantially in particular matters that will affect their own financial interests. The settlement resolves allegations that, between January 2019 and May 2022, Wu worked personally and substantially on at least nine patent applications submitted by companies in which she had a financial interest. For example, Wu allegedly worked personally and substantially on patent applications for companies in which she held more than $300,000 and $140,000 worth of stock, respectively. In addition, the settlement resolves allegations that Ms. Wu reviewed patent applications submitted by companies that were commercial competitors of a company for which she owned more than $900,000 worth of stock. As part of the settlement, Wu has agreed to pay a civil penalty to resolve allegations that her conduct violated conflict-of-interest prohibitions for federal employees.

“The Department of Commerce Office of Inspector General works hard to investigate alleged conflicts of interest at USPTO and throughout the Department of Commerce — and hold offenders accountable,” said Special Agent in Charge Laura Barsczewski of the Department of Commerce Office of Inspector General, Office of Investigations. “We will continue to be resolute in our charge for justice and work closely with the Department of Justice.”

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the Department of Commerce, Office of Inspector General. This matter was handled by Trial Attorney Joshua Barron of the Civil Division.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Updated February 25, 2026 Component Civil Division Press Release Number: 26-189

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