The Federal Circuit, the nation’s highest patent court, is currently wrestling with an appeal that could significantly alter the landscape for attorneys involved in patent infringement lawsuits. The impact on patent professionals and practitioners in major corporations and law firms, which represent some of the world’s most prolific filers of such lawsuits, could be significant.
The appeal concerns DISH Network L.L.C. and Sirius XM Radio, who are seeking $3.3 million in fees from Dragon Intellectual Property, LLC, a patent assertion company. The controversy turns on whether attorneys representing a patentee can be personally liable for the payment of these fees.
The current fee-shifting provision of the Patent Act dates back to 1952. It allows for “reasonable” attorneys’ fees to be awarded to the “prevailing party” in “exceptional cases”. However, traditionally these fees have been awarded against the losing parties, not their attorneys.
Defense lawyers have voiced concerns that patent assertion companies are side-stepping such fee payments by establishing ‘judgement-proof’ entities. In this context, the appeal could mark an alteration to the status quo, shifting liability and discouraging patent assertion companies from instigating litigation with limited financial risks.
A full examination of the case, understanding its gravity for the patent litigation landscape, and exploring potential ramifications are essential for legal professionals. The landscape of patent litigation law could change, marking potentially substantial implications for practitioners active in this space.
Full details of the case can be found on Bloomberg Law.