Federal Circuit Affirms Victory for Finnegan Client Castle Retail Against Hawk Technology Systems

FOR IMMEDIATE RELEASE
November 17, 2025

WASHINGTON, DC— On November 14, the United States Court of Appeals for the Federal Circuit affirmed a legal victory on behalf of Finnegan client Castle Retail, a family-owned chain of neighborhood grocery stores in Memphis, Tennessee. The Court upheld the decision of District Judge Jon P. McCalla, who previously ruled in favor of Castle Retail and awarded attorney fees against Hawk Technology Systems under 35 U.S.C § 285, based on the finding that the case was exceptional.

Hawk sued Castle Retail in 2020, alleging infringement of Hawk’s patent directed to a method of viewing multiple videos simultaneously on a video surveillance system. Castle Retail successfully argued before Judge McCalla in 2021 that the patent is directed to ineligible subject matter under 35 U.S.C § 101, and the Federal Circuit affirmed Judge McCalla’s decision in 2023. Judge McCalla then awarded Castle Retail its attorney fees, which the Federal Circuit affirmed on Hawk’s appeal.

The Federal Circuit’s decision is especially important because the Court rejected every argument made by Hawk and confirmed that Castle Retail was entitled to recover its legal fees based on the totality of the circumstances, and that Judge McCalla did not abuse his discretion in awarding Castle Retail its attorney fees. In particular, the Federal Ciruit agreed that Hawk’s lawsuit, which was one among many in a pattern of frivolous lawsuits brought by Hawk, was exceptionally weak and that Hawk’s conduct during the case, including its misconduct during settlement negotiations, was unreasonable. As a result, Hawk Technology Systems must pay Castle Retail’s attorney fees and additional appellate costs.

“We are very pleased with the Federal Circuit’s well-reasoned decision affirming Judge McCalla’s award of attorney fees in Castle Retail’s favor,” said Finnegan partner Justin Hasford, lead counsel for Castle Retail in this litigation.

Contacts

Terra Liddell, Chief Marketing Officer
terra.liddell@finnegan.com

Angela Robinson, Director of Branding and Communications
angela.robinson@finnegan.com

About Finnegan
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