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Payback time: First patent troll ordered to pay “extraordinary case” fees

Posted on June 2nd, 2014 at 9:48 by John Sinteur in category: Intellectual Property

[Quote]:

When Santa Barbara startup FindTheBest (FTB) was sued by a patent troll called Lumen View last year, it vowed to fight back rather than pay up the $50,000 licensing fee Lumen was asking for. Company CEO Kevin O’Connor made it personal, pledging $1 million of his own money to fight the legal battle.

Once FindTheBest pursued the case, the company dismantled the troll in short order. In November, the judge invalidated Lumen’s patent, finding it was nothing more than a description of computer-oriented “matchmaking.”

At that point, FindTheBest had spent about $200,000 on its legal fight—not to mention the productivity lost in hundreds of work hours spent by top executives on the lawsuit, and three all-company meetings.

Now the judge overseeing the case has ruled (PDF) that it’s Lumen View, not FindTheBest, that should have to pay those expenses. In a first-of-its-kind implementation of new fee-shifting rules mandated by the Supreme Court, US District Judge Denise Cote found that the Lumen View lawsuit was a “prototypical exceptional case.”


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