ICON v. Octane Fitness is a nonprecedential case decided on August 25, 2017 on appeal from the District of Minnesota. There, the district court awarded $1.6 million in attorney fees to defendant Octane Fitness, finding the case exceptional on remand from the Supreme Court. Plaintiff ICON appealed the exceptionality finding, and Octane appealed the fee amount.
The Federal Circuit affirmed the exceptionality finding and the attorney-fee amount.
The district court did not abuse its discretion in finding the case exceptional on remand. The district court found ICON’s litigation position unreasonable because its “claim construction arguments were wholly at odds with the patent text, prosecution history, and inventor testimony, and would have resulted in impermissibly broad claims.” The district court also found litigation misconduct: 1) ICON initially included a distributor of Octane’s equipment to increase costs to Octane; 2) ICON failed to show it performed a sufficient pre-suit analysis; 3) emails by an ICON employee suggest that the lawsuit was “a way to get royalties from their competitor;” 4) ICON never commercialized the asserted patent.
The district court did not abuse its discretion with the fee amount. This finding was based on a stipulation between the parties, and the Federal Circuit declining “to further examine the minutia of the fee award, as the district court has the discretion to determine the amount.” The district court provided a reasonable analysis of the calculation of the fee award here.
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Icon Health & Fitness, Inc. v. Octane Fitness, Ltd. Liab. Co., 706 F. App’x 666 (Fed. Cir. 2017)