Electronic Communication Technologies, LLC v. ShoppersChoice.com, LLC

Summary

The Federal Circuit vacated a district court's denial of attorney fees under 35 U.S.C. § 285, holding that the district court abused its discretion by failing to consider the totality of circumstances, including the patentee's pattern of filing repeated infringement actions for nuisance-value settlements and the objective unreasonableness of the patent claim after prior invalidity rulings. The court found that the district court applied the wrong fee-shifting statute (Lanham Act instead of Patent Act) and did not address evidence of abusive litigation conduct or the claim's weakness under § 101. On remand, the district court must weigh the patentee's litigation history and the substantive strength of the litigating position to determine if the case is exceptional.

Holdings

1. The district court abused its discretion by failing to consider ECT's pattern of litigation abuses and the objective unreasonableness of its patent claims, which are relevant factors under Octane Fitness.

Questions Presented

1. Whether the district court abused its discretion in denying attorney fees under 35 U.S.C. § 285 by failing to consider ECT's manner of litigation and the objective unreasonableness of its infringement claims.

Disposition

vacated