Federal Circuit Reverses Texas Judge in Rothschild Attorney Fee Dispute

  • June 15, 2017
  • Automotive, Consumer Electronics and PCs, Networking, Patent Litigation Feature

The Federal Circuit has overturned a Texas judge’s decision to deny attorney fees in a case brought against ADS Security (2:15-cv-01431) by Rothschild Connected Devices Innovations, LLC (RCDI), an NPE controlled by inventor Leigh M. Rothschild. In an opinion issued on June 5, the Federal Circuit ruled that Magistrate Judge Roy S. Payne had erred by holding that RCDI’s litigation conduct was not “exceptional” under Octane. Rather, the Federal Circuit found that the district court had improperly relied on affidavits filed by Rothschild and RCDI’s counsel regarding the plaintiff’s “good faith” belief in the validity of the asserted patent (8,788,090), had “misjudged” Rothschild’s broader litigation conduct, and had “conflated” 35 U.S.C. Section 285 with Rule 11 (governing sanctions) in its analysis (2016-2521).

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