Octane Fitness v. Icon Health and Fitness
Holding
Section 285 of the Patent Act authorizes a district court to award attorney's fees in patent litigation in "exceptional cases" " that is, cases which stand out from the others with respect to the substantive strength of a party"s litigating position or the unreasonable manner in which the case was litigated. District courts should determine whether a case is exceptional "in the case-by-case exercise of their discretion, considering the totality of the circumstances." The Federal Circuit"s Brooks Furniture Mfg. v. Dutailier framework, pursuant to which a case is "exceptional" only if the district court finds either litigation-related misconduct of an independently sanctionable magnitude or determines that the litigation was both "brought in subjective bad faith" and "objectively baseless," superimposes an inflexible framework onto statutory text that is inherently flexible.
Judgment
Reversed and remanded, 9-0, in an opinion by Sonia Sotomayor on Apr 29, 2014.
Issue: Whether the Federal Circuit”s promulgation of a rigid and exclusive two-part test for determining whether a case is “exceptional” under 35 U.S.C. § 285 improperly appropriates a district court”s discretionary authority to award attorney fees to prevailing accused infringers in contravention of statutory intent and this Court”s precedent, thereby raising the standard for accused infringers (but not patentees) to recoup fees and encouraging patent plaintiffs to bring spurious patent cases to cause competitive harm or coerce unwarranted settlements from defendants.
Recommended Citation: Octane Fitness v. Icon Health and Fitness, SCOTUSblog, https://www.scotusblog.com/cases/octane-fitness-v-icon-health-and-fitness/