U.S. Court Keeps Cards Close to the Vest in Hearing on Idaho Patent Law

The Federal Circuit heard oral arguments Monday in an appeal testing whether Idaho’s Bad Faith Assertions of Patent Infringement Act can apply to patent enforcement actions filed in federal court. The case stems from U.S. District Judge David C. Nye’s order requiring Longhorn IP affiliate Katana Silicon Technologies to post an $8 million bond before resuming its infringement suit against Micron Technology—a ruling Katana argues is unconstitutional and conflicts with federal patent law. 

Idaho’s 2014 statute is one of nearly three dozen state laws designed to deter patent trolling. The Federal Circuit judges assigned to the appeal focused on whether Idaho’s law goes further than similar laws and whether Nye’s bond order can be reviewed on appeal.  

Although Nye entered a stay pending the Federal Circuit appeal and IPRs initiated by Micron, the question of whether Longhorn and Katana violated Idaho’s statute remains in question.  

Finnegan partner Lionel Lavenue says that point could undermine the appellants’ argument. 

“Longhorn made it very clear that there was no finding of bad faith,” Lionel told MLex. “In my mind, they thought that that was a great reason why the bond was wrong.” 

"The problem is that it’s also a great reason why jurisdiction is not there.”  

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