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ARTICLE · 16 JUNE 2014

Key Developments In U.S. Patent Law

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In this newsletter, we provide an overview of the significant developments in patent litigation in the United States during the first six months of 2014.

United StatesIntellectual Property
A&O Shearman
A&O Shearman
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In this newsletter, we provide an overview of the significant developments in patent litigation in the United States during the first six months of 2014.

Fee Shifting

Supreme Court Lowers Standard for Awarding Fees to a Prevailing Party

Since 1952, courts in the United States have had the authority to award attorney's fees to the prevailing party in "exceptional" patent infringement cases. This authority, which is codified at 35 U.S.C. § 285, is a departure from the typical rule in U.S. courts that each party must pay its own fees.

In 2005, the Federal Circuit held in Brooks Furniture that a case is only "exceptional" under § 285 if it involves "material misconduct" or was both objectively and subjectively baseless. As a result of this high standard, it became nearly impossible for a prevailing party to obtain fees under § 285. On April 28, 2014, the Supreme Court decided two cases which changed the rules for fee shifting in patent cases. In a 9-0 decision

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