Foreign Plaintiffs Not Required to Post Bond for Defendant’s Fees and Costs

In connection with plaintiff's motion to strike plaintiff's infringement contentions, the court denied without prejudice defendant's motion to require plaintiffs' to post a bond of $750,000 for defendant's anticipated 35 U.S.C. § 285 claim. "There is no general federal statute or civil rule governing whether plaintiffs may be required to post security for the costs and fees the opposing party may incur in order to proceed with an action. 'However, the federal district courts have inherent power to require plaintiffs to post security for costs.' . . . [E]ven if Defendants had demonstrated a reasonable likelihood of success on the merits . . . they have not shown that this case is 'frivolous,' that it arises from improper motivation, or that there is objective unreasonableness in the factual and legal components of the case. [Plaintiff] is seeking to protect patents he has owned for many years, and that he alleges were infringed after business talks broke down between himself and Defendants. While the Court may entertain a renewed motion if Plaintiffs again fail to satisfy Patent Local Rule 3-1, if the Court determines their claim is invalid under Federal Rule of Civil Procedure 11, or if the Court determines Plaintiffs lack standing, there is insufficient evidence for the Court to say this action is 'extraordinary' as currently litigated."

James Sung et al v. Shinhan Diamond America, Inc. et al, 2-14-cv-00530 (CACD February 25, 2015, Order) (Fitzgerald, J.)