UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
__________________________________________
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INTEX RECREATION CORPORATION, )
)
Plaintiff, )
)
v. ) Civil Action No. 04-1785 (PLF)
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TEAM WORLDWIDE CORPORATION, )
)
Defendant. )
__________________________________________ )
MEMORANDUM OPINION AND ORDER
Plaintiff Intex Recreation Corporation (“Intex”) seeks an award of attorneys’ fees,
costs, and expenses, pursuant to 35 U.S.C. § 285. That statute authorizes courts to award
attorneys’ fees in “exceptional cases.” Specifically, Intex requests all fees and costs incurred
since November 1, 2013 — the date Team Worldwide Corporation (“TWW”) insisted on
proceeding to summary judgment despite having received an adverse claim construction. 1 TWW
maintains that its summary judgment arguments were not meritless and that this case is not the
kind “exceptional case” contemplated by the statute. In the alternative, it maintains that it is
premature to award attorneys’ fees while TWW’s appeal is pending. Upon careful consideration
1
In its motion, Intex requests oral argument. See Mot. at 1. The Court has
concluded that oral argument would not assist it in resolving the pending motion and therefore,
in its discretion, denies Intex’s request for oral argument. See LOC. CIV. R. 7(f).
of the parties’ arguments, the relevant legal authorities, and the pertinent portions of the record in
this case, the Court will grant Intex’s motion. 2
I. BACKGROUND
The facts of this case, as relevant here, are straightforward. 3 TWW and Intex
manufacture inflatable air mattresses. Intex Rec. Corp. v. Team Worldwide Corp. (“Intex I”),
Civil Action No. 04-1785 (PLF), 2013 WL 5328372, at *2 (D.D.C. Sept. 24, 2013). TWW
claims Intex’s mattresses infringe its United States Patent No. 6,793,469 B2 (“the ‘469
Patent”). See U.S. Patent No. 6,793,469 B2 (filed December 18, 2000). That patent describes an
air mattress comprised of (1) an inflatable body, (2) a socket built in the inflatable body, (3) an
electric pump that includes a pump body and an air outlet, and (4) a battery case. See ‘469
Patent col.1 ll.30-35 (Summary of the Invention); id. at col.7 ll.24-35, col.8 ll.24-col.9 ll.60
(Claims).
Among other aspects, Intex’s mattresses have open cavities into which the electric
pump components are fastened with screws. Intex Rec. Corp. v. Team Worldwide Corp.
(“Intex II”), Civil Action No. 04-1785 (PLF), 2014 WL 906105, at *4. Substantial disassembly
is required to remove the pump compenents from the mattress. Id. Therefore, because “a
[patent] claim is not infringed unless every element thereof is met in the accused
2
Relevant papers reviewed by the Court with respect to this matter include: the
joint status report of November 1, 2013 (“Jt. Status Rpt.”) [Dkt. No. 209]; Intex’s motion for
fees, costs, and expenses (“Mot.”) [Dkt. No. 230]; Intex’s supplemental brief in support of its
motion for fees (“Supp. Mot.”) [Dkt. No. 234]; TWW’s opposition to Intex’s motion for fees,
costs, and expenses (“Opp.”) [Dkt. No. 235]; and Intex’s reply in support of its motion for fees,
costs, and expenses (“Reply”) [Dkt. No. 236].
3
For greater detail, see the Court’s September 24, 2013 Opinion and Order on
claim construction and its March 10, 2014 Opinion on summary judgment. See Intex Rec. Corp.
v. Team Worldwide Corp. (“Intex I”), Civil Action No. 04-1785 (PLF), 2013 WL 5328372
(D.D.C. Sept. 24, 2013); Intex Rec. Corp. v. Team Worldwide Corp. (“Intex II”), Civil Action
No. 04-1785 (PLF), 2014 WL 906105 (D.D.C. Mar. 10, 2014).
2
device,” Markman v. Westview Instruments, Inc., 52 F.3d 967, 1000 (Fed. Cir. 1995), whether
that cavity constituted a “socket,” as that term was used in the ‘469 patent, was a crucial, and
potentially dispositive, question.
TWW argued that “socket,” as used in the ‘469 Patent, meant “an opening or
hollow that forms a holder for something.” See Jt. Statement of Disp. Claim Terms and Phrases
at 3 [Dkt. No. 138]; Def.’s Mot. for Claim Constr. Ex. A at 1 [Dkt. No. 140]. Intex, on the other
hand, argued that “socket” meant “a structure that fits and holds onto an inserted part . . . so that
the structure and the part are detachably connected to each other.” Pl.’s Claim Constr. Br. at 19,
26 [Dkt. No. 141]. Magistrate Judge Robinson adopted TWW’s definition, Intex I at *3, but this
Court rejected her construction of the term “socket.” See id. at *7.
Reviewing Magistrate Judge Robinson’s construction de novo, this Court first
determined that the claim language itself did not compel adoption of one party’s construction
over the other. Intex I at *8. Looking to the patent’s specification and prosecution history, the
Court rejected TWW’s broad construction. Id. at *9-13. The Court instead adopted Intex’s
construction and concluded that the term ‘socket’ is construed as “a structure that fits and holds
onto an inserted part, so that the structure and the part are detachably connected to each other,”
“such as a light bulb socket, or an electric socket.” Id. at *7.
After this Court adopted Intex’s narrow construction, Intex proposed that TWW
stipulate to non-infringement — because the accused mattresses clearly lack a “socket” under the
Court’s construction — and pursue an immediate appeal. See Jt. Status Rpt. at 2-3 (Intex’s
Proposed Schedule). Noting that “claim construction in this case is likely dispositive of
infringement,” the parties notably “d[id] not dispute any relevant facts regarding the accused
product,” id. at 2, and had agreed that a finding of infringement likely depended on whether the
3
accused products contained a “pump body” and a “socket,” as those terms are used in the ‘469
patent. Intex I at *2 (citing Def.’s Mem. in Supp. Mot. Claim Constr. and Partial Summary
Judgment at 1, 10 [Dkt. No. 102-2]; Pl.’s Obj. to Magistrate Judge’s Mar. 28, 2008 Order at 18-
19 [Dkt. No. 147]). TWW refused to stipulate. See Jt. Status Rpt. at 3-4 (TWW’s Proposed
Schedule).
The parties then filed cross-motions for summary judgment. Intex II at *1. But
the Court found that TWW’s arguments had “fatal problems,” id. at *5; “ma[d]e no sense,” id. at
*6; were “virtually identical” to previously rejected arguments, id. at *7, *11; “directly
contradicted . . . the patent specification,” id. at *10; and relied on an interpretation of the first
embodiment that was “plainly incorrect.” Id. at *11. Moreover, TWW relied on an expert
opinion that lacked explanation and “rest[ed] on an incorrect claim interpretation.” Id. at *9
(internal quotation marks omitted) (citation omitted); see generally id. (regarding lack of analysis
for expert’s unsupported conclusion). The Court therefore denied TWW’s motion for summary
judgment and granted Intex’s. Id. at *11.
Intex now moves for an award of attorneys’ fees, expenses, and costs incurred
after TWW refused to stipulate to non-infringement pursuant to 35 U.S.C. § 285. Supp. Mot.
at 1. In opposing the motion, TWW argues, among other things, that (1) its arguments were not
“exceptionally meritless” because the Court’s construction of the term “socket” was ambiguous,
Opp. at 8-10; and, in the alternative, that (2) it is premature for the Court to award attorneys’ fees
in this case because TWW has appealed both this Court’s construction of the term “socket” and
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its findings of non-infringement. Id. at 10-11. 4 The Court is not persuaded by either argument
and will grant Intex’s motion.
II. LEGAL STANDARDS
Section 285 of the Patent Act provides that a court “in exceptional cases may
award reasonable attorney fees to the prevailing party.” 35 U.S.C. § 285. Until recently, “the
Federal Circuit had limited fee shifting to cases in which the prevailing party demonstrated, by
clear and convincing evidence, either (1) litigation misconduct; or (2) that the litigation was both
objectively baseless and brought in subjective bad faith.” Small v. Implant Direct Mfg. LLC,
No. 06 Civ. 683(NRB), 2014 WL 5463621, at *2 (S.D.N.Y. Oct. 23, 2014) (citing Brooks
Furniture Mfg., Inc. v. Dutailier Int’l, Inc., 393 F.3d 1378, 1381-82 (Fed. Cir. 2005), abrogated
by Octane Fitness, LLC v. ICON Health & Fitness, Inc., 134 S. Ct. 1749 (2014)). That test’s
first prong required “willful infringement, fraud or inequitable conduct in procuring the patent,
misconduct during litigation, vexatious or unjustified litigation, conduct that violates Fed. R.
Civ. P. 11, or like infractions.” Brooks Furniture Mfg., Inc. v. Dutailier Int’l, Inc., 393 F.3d at
1381. Absent such misconduct, a party could recover fees under the second prong for baseless
and bad faith litigation, which was considered an “exacting standard.” iLOR, LLC v. Google,
Inc., 631 F.3d 1372, 1377 (Fed. Cir. 2011).
The Supreme Court, however, recently roundly rejected the Brooks Furniture test
as “overly rigid” and “so demanding that it would appear to render § 285 largely
superfluous.” Octane Fitness, LLC v. ICON Health & Fitness, Inc., 134 S. Ct. at 1756, 1758.
4
TWW also offers a laundry list of facts it believes show “[t]he issues in this case
do not even approach the level of being ‘exceptionally meritless . . . .’” Opp. at 6. Most are
irrelevant, such as the number of pages of the Court’s summary judgment opinion, or the fact
that TWW offered an expert supporting its arguments. Id. In any event, the Court disagrees.
5
The Court held that, under Section 285, “an ‘exceptional’ case is simply one that stands out from
others with respect to the substantive strength of a party’s litigating position (considering both
the governing law and the facts of the case) or the unreasonable manner in which the case was
litigated.” Id. at 1756. “District courts may determine whether a case is ‘exceptional’ in the
case-by-case exercise of their discretion, considering the totality of the circumstances.” Id. 5 In
exercising that discretion, courts may consider, among other factors, “frivolousness, motivation,
objective unreasonableness (both in the factual and legal components of the case) and the need in
particular circumstances to advance considerations of compensation and deterrence.” Id. at 1756
n.6. (citation omitted). Finally, the Court held that a prevailing party need only establish its
entitlement to fees under Section 285 by a preponderance of the evidence — rather than by clear
and convincing evidence as required under Brooks Furniture. Id. at 1758. “[W]here a party has
set forth some good faith argument in favor of its position, it will generally not be found to have
advanced ‘exceptionally meritless’ claims.” Small v. Implant Direct Mfg. LLC, No. 06 Civ.
683(NRB), 2014 WL 5463621, at *3. Conversely, courts have awarded attorneys’ fees under
Section 285 where a party advances arguments that are particularly weak and lack support in the
record or seek only to re-litigate issues the court has already decided. See Cognex Corp. v.
Microscan Sys., Inc., No. 13-CV-2027 JSR, 2014 WL 2989975, at *4 (S.D.N.Y. June 30, 2014).
III. DISCUSSION
This Court’s claim construction foreclosed any reasonable argument that Intex’s
mattresses infringed the ‘469 patent. Put another way, no reasonable litigant would argue that
5
In a decision issued the same day, the Supreme Court underscored this discretion
by holding that “the determination whether a case is ‘exceptional’ under § 285 . . . is to be
reviewed [by a court of appeals] only for abuse of discretion.” Highmark, Inc. v. Allcare Health
Mgmt. Sys., Inc., 134 S. Ct. 1744, 1748 (2014) (footnote omitted).
6
Intex’s product fit the Court’s construction of the term “socket.” But TWW refused Intex’s
proposal to stipulate to non-infringement, while preserving its appeal rights, and instead persisted
towards summary judgment. TWW then filed a conclusory expert report and advanced flawed,
nonsensical, and baseless arguments, which lacked factual support, seeking only to re-litigate
this Court’s construction of the term “socket.” See supra at 4-5. An open cavity requiring
screws clearly does not, as TWW argued at summary judgment, “fit and hold” like a “light bulb
socket.” Nor could such a fixed pump reasonably be described as “detachably connected,” again
as TWW argued at summary judgment. In view of the Court’s claim construction, such
arguments are exceptionally meritless and warrant an award of attorneys’ fees pursuant to
35 U.S.C. § 285. See, e.g., Cognex Corp. v. Microscan Sys., Inc., No. 13-CV-2027 JSR, 2014
WL 2989975, at *4.
The Court is not persuaded by TWW’s argument that this Court’s original claim
constructions of the terms “socket” and “pump body” were ambiguous. Specifically, TWW
argues that, at summary judgment, this Court (1) “implicitly altered its [original] construction of
‘pump body’ to include the requirement of a housing (thereby precluding the housing from being
a ‘socket’)”; and (2) “implicitly modified its [original] construction of ‘socket’ to include the
requirement of holding in every direction,” the requirement that “the ‘fit and hold’ requirement
cannot be achieved through the use of screws,” and “the requirement that ‘detachably connected’
means via manual effort as opposed to with the aid of a tool.” Opp. at 9-10. TWW, however,
conflates its disagreement with this Court’s claim construction with the existence of ambiguity.
There was no ambiguity. Moreover, in its summary judgment Opinion, the Court merely added
one additional example of a “socket” with a “fit and hold” connection. That single addition,
even if TWW were correct that the claim construction was ambiguous, was not an implicit
7
modification or alteration of the claim construction. See Reply at 6 (comparing the Court’s
Opinion on claim construction with its Opinion on summary judgment).
TWW also argues that it is premature for the Court to award attorneys’ fees in this
case because TWW has appealed both this Court’s construction of the term “socket” and its
findings of non-infringement. Opp. at 10-11. But TWW’s pending appeal is irrelevant to
whether TWW’s infringement arguments at the summary judgment stage were “exceptionally
meritless.”
IV. CONCLUSION
For the foregoing reasons, the Court concludes that this is an exceptional case
under 35 U.S.C. § 285 where an award of attorneys’ fees is warranted. It therefore is hereby
ORDERED that Intex’s motion for attorneys’ fees is GRANTED; it is
FURTHER ORDERED that Intex file a proposed amount for attorneys’ fees and
costs incurred since November 1, 2013 with detailed supporting documentation by January 23,
2015; and it is
FURTHER ORDERED that the parties propose a schedule for briefing on the
reasonableness of Intex’s proposed fees and costs, if necessary, on or before January 30, 2015.
SO ORDERED.
/s/___________________________
PAUL L. FRIEDMAN
United States District Judge
DATE: January 9, 2015
8