The study apparently finds that about half of the awards of
attorney fees apply to competitor cases and the other half to non-practicing
entities. Interestingly, the awards
against non-practicing entities “have often been against small individual
inventors, not Intellectual Ventures, Round Rock Research, IP Nav and other 800-pound
gorillas that monetized patent litigation.”
The article does discuss how Acacia Research Group, a supposed NPE, is
exceptional with four awards against it for a total of around US $1.8
million. The article appears to
speculate that the awards against small individual inventors were cases where
the small individual inventors (inexperienced players) apparently perhaps
overvalued their case based on the law and facts. There appears to be a difference in awards based on the district in which the case was filed. It does, however, seem to make sense that in the
current climate sophisticated monetizers would only bring relatively strong
cases (maybe in the E.D. of Texas). The article also notes that
district court judges are mixed in considering the practicing status of the
party in awarding fees. Finally, the article discusses a recent US $7.8 million award of fees in the Northern District of California against the Alzheimer's Institute to Eli Lilly and Elan Pharmaceuticals. Unfortunately, the
data is behind a paywall; however it is not too expensive to access it.
"Where money issues meet IP rights". This weblog looks at financial issues for intellectual property rights: securitisation and collateral, IP valuation for acquisition and balance sheet purposes, tax and R&D breaks, film and product finance, calculating quantum of damages--anything that happens where IP meets money.
Tuesday, 3 May 2016
Patent Monetization Entities Generally Asserting Ordinary "Meritfull" Claims?
The Recorder has published data and conclusions concerning a
study of district court awards of attorney fees post-U.S. Supreme Court
decisions Octane Fitness and Highmark. Both
Octane Fitness and Highmark concerned the availability of attorney fees. In the United States, parties generally bear
the cost of their attorney fees absent an exception. For patent infringement, there is a statute
specifically allowing for the award of attorney fees for “exceptional” cases. The U.S. Court Appeals for the Federal
Circuit interpreted that statute to require a very high standard for proving
attorney fees. Some believed that this
high standard did not provide a strong enough disincentive to prevent so-called
“patent trolls” from bringing weak nuisance suits for licensing fees. In the Octane Fitness case (2013), the U.S.
Supreme Court rejected the Federal Circuit’s high standard and ruled that “exceptional”
merely meant a case that was out of the ordinary with respect to substantive
litigation strength of position or how the case was litigated.
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