Alzheimer's Institute of America, Inc. v. Avid Radiopharmaceuticals, et al, 2-10-cv-06908 (PAED March 30, 2015, Order) (Savage, J.)
Wednesday, April 1, 2015
Plaintiff’s Assertion of Patent Known to be Owned by Another Justifies Award of Attorney Fees
Following a jury trial, the court granted defendants' motions for attorney fees under 35 U.S.C. § 285 where plaintiff conspired to defraud two entities of ownership of the patents defendants were accused of infringing. "[Plaintiff] contends that this is not an exceptional case because the jury made no findings regarding the existence of a conspiracy or an intent to deceive the [PTO] or [the rightful owner]. . . . [Plaintiff] knew, when it brought this action, that it was not the legal owner of the patent. . . . Despite this knowledge, it asserted that it was the rightful owner of the patent and brought this infringement action. This conduct undoubtedly constitutes bad faith. . . . Bringing this action was nothing more than a perpetuation of the conspiracy. . . . Litigants must be discouraged from bringing an infringement action based upon a patent they know or should have known they do not rightfully own, especially where they defrauded the PTO and the rightful owner of the patent."