Ep. 15 – Adjustacam LLC v Newegg Attorneys’ Fees or Somali Pirates

Leading IP Industry Podcast

IP Frequently – where, while always fair, nothing is off limits. We invite you to join the conversation.

Today, Brad and David discuss the recent Adjustacam (subsidiary of Acacia Research) v Newegg case where Newegg was awarded legal fees. The also provide some depth on the Somali Pirate problem.

Opinion Summary: AdjustaCam, LLC v. Newegg, Inc., __ F.3d __, 2017 WL 2854387 (Fed. Cir. July 5, 2017)(Reyna, J.), the Federal Circuit remanded a patent infringement case to the Texas trial court to grant an award of attorney fees against the patentee in favor of the accused.

From the Opinion: “The district court abused its discretion failing to follow our mandate to evaluate the totality of the circumstances under Octane in the first instance. Moreover, [patentee] AdjustaCam filed a weak infringement case against [accused infringer] Newegg that became objectively baseless after the district court’s Markman order. The district court’s determination that AdjustaCam could reasonably argue infringement post-Markman is based on clearly erroneous fact-findings. AdjustaCam also unreasonably litigated the case by repeatedly serving expert reports and declarations at the last minute. The pattern of low and erratic settlements, though not determinative, reinforces a conclusion of unreasonableness. The district court’s conclusion that AdjustaCam reasonably litigated this case was clearly erroneous. Based on the totality of these case-specific circumstances, we hold that the district court abused its discretion in denying Newegg’s motion for fees.”


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