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."

Checkpoint Systems v. All-Tag Security, et al, 2-01-cv-02223 (PAED August 19, 2015, Order) (Tucker, J.)