Monday, December 28, 2015

Defendant’s $6.8 Million Fee Request Not “Obviously Excessive” In Light of Plaintiff’s Settlement Demand

The special master recommended reducing the amount of attorneys' fees defendant requested under 35 U.S.C § 285, but rejected plaintiff's argument that a $6.8 million fee request was inherently unreasonable. "[T]he AIPLA Survey lists the average cost of a patent defense may run as high as $5,500,000.00 to $6,000,000.00 for a claim which might result in damages in excess of $25,000,000.00. In determining the amount involved, [plaintiff] self-servingly attempted to value the case somewhere between $1,000,000.00 and $10,000,000.00. However . . . [plaintiff] demanded a settlement 2 months before trial of $18,300,000.00 upfront and $25,000,000.00 per drug candidate approved for market. . . . [Defendant] was justified in thinking it was facing an exposure in excess of $25,000,000.00 and therefore the AIPLA survey supports a finding the request for counsel fees was not obviously excessive."

Alzheimer's Institute of America, Inc. v. Avid Radiopharmaceuticals, et al, 2-10-cv-06908 (PAED December 22, 2015, Order) (Cohen, Special Master)

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