March 2014

Looking Ahead

On February 26, 2014, the U.S. Supreme Court heard oral argument in two patent cases involving attorneys’ fees under 35 U.S.C. § 285.  First, the Supreme Court heard arguments in Octane Fitness, LLC v. ICON Health & Fitness, Inc., No. 12-1184, regarding the Federal Circuit’s affirmation of a denial of fees due to the Court not finding the case “exceptional” under Federal Circuit precedent.  Petitioner Octane Fitness, LLC appealed the Federal Circuit’s ruling, presenting arguments against the Federal Circuit’s requirement that a case be “objectively baseless” to be eligible for a fee award.  Second, the Supreme Court heard arguments in Highmark Inc. v. Allcare Health Management Systems, Inc., No. 12-1163, regarding the Federal Circuit’s reversal of the district court’s finding that certain of Allcare Health Management Systems, Inc.’s claims were objectively baseless, having reviewed the district court’s determination de novo.  Petitioner Highmark Inc. appealed the Federal Circuit’s ruling, arguing that a unitary “abuse of discretion” standard of review should be used for all § 285 determinations.

The Supreme Court is expected to rule on the cases by the end of this year’s term in June 2014.