Checkpoint Systems v. All-Tag Security, et al, 2-01-cv-02223 (PAED August 19, 2015, Order) (Tucker, J.)
Monday, August 24, 2015
Attorney Fees Awarded for Bad Faith Lawsuit Brought to Cripple Defendants’ Business
On remand, the court again granted defendants' motion for attorney fees under 35 U.S.C. § 285 because plaintiff brought its suit in bad faith. "This case 'stands out from others' in that [plaintiff] brought suit in bad faith with the improper motive of crippling Defendants’ business. . . . [I]n an effort to purchase [defendant], [plaintiff] accused [defendant] of infringing on a number of patents, including the [patent-in-suit]. [Plaintiff's] then Vice President and General Counsel . . . threatened that [defendant] would 'bleed with legal fees' unless [it] capitulated. [Counsel] also warned, 'I’m going to put you in bankruptcy and you will cry.' The Court finds that this evidence compellingly demonstrates how [plaintiff's] motive in bringing suit was not to assert its patent rights, but to interfere improperly with Defendants’ business and to protect its own competitive advantage."