In Octane Fitness LLC v. Icon Health Fitness Inc., the U.S. Supreme Court changed the test to determine whether attorneys’ fees should be awarded in patent litigation. The Supreme Court replaced the Federal Circuit’s standard (“objectively baseless” and “bad faith”) with a legal definition of exceptional. Although the Court’s ruling does not give guidance on the new standard for attorneys’ fees, the Supreme Court has opened the door wider to allow parties to seek attorneys’ fees at the conclusion of patent litigation. The new standard has created a potential shift in bargaining power when one party asserts that claims are frivolous. How much of an impact this shift has will become evident as courts work through the exceptionality test and determine when fee shifting is appropriate.

Source: http://www.insidecounsel.com/2014/05/02/recent-supreme-court-case-will-affect-patent-litig

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