Addressing the standard for imposing fee and cost awards against
counsel, the US Court of Appeals for the Federal Circuit reversed
the district court's award holding the patent owner's
lawyers jointly and severally liable for litigating patents invalid
under Alice. Gust, Inc. v. AlphaCap Ventures,
LLC, Case No. 17-2414 (Fed. Cir. Sept. 28, 2018)
(Linn, J) (Wallach, J, dissenting).
AlphaCap, a non-capitalized, non-practicing entity, secured
counsel at Gutride Safier (GS) on a contingency basis and asserted
three patents against 10 internet crowdfunding companies in January
2015, seven months after the Supreme Court of the United States
decided Alice (
IP Update, Vol. 17, No. 7). Nine defendants settled for
less than $50,000, but Gust continued to litigate both infringement
and invalidity.
