Appeals court says first patent troll hit with fees under Octane must pay up

FindTheBest CEO Kevin O'Connor and Director of Operations Danny Seigle. (credit: FindTheBest.com)

The top US patent court has upheld an award of attorneys' fees (PDF) against a patent troll that sued a startup called FindTheBest (now Graphiq) in 2013. The fee award against Lumen View Technology was the first one granted under new rules that came into effect as a result of the Supreme Court's 2014 Octane Fitness decision.

The ruling by the US Court of Appeals for the Federal Circuit, published Friday, serves as a signpost as to what kind of fees will be upheld under the new standard. But, it's not a complete win for Graphiq. While the three-judge appeals panel upheld the basis of the fee award, they vacated the award itself, which was a little more than $300,000. The panel's opinion said that the lower court's decision to double the requested fees wasn't justified.

"It's been a lengthy battle, but seeing the Federal Circuit explicitly inviting the District Court to award sanctions under Rule 11 is a great signal," said Graphiq CEO Kevin O'Connor in an e-mailed comment to Ars. "We're confident that a fair assessment of fees will occur back in the District Court. This is just one more step in our fight against Lumen View, and believe me, it's nowhere near over."