CellSpin Soft v. Fitbit was decided on June 25, 2019 on appeal from the Northern District of California. Plaintiff CellSpin filed more than a dozen cases alleging infringement of certain patents. On a motion to dismiss, the district court found that none of the asserted claims were patent eligible. The district court found the case exceptional because CellSpin’s claims were “”manifestly directed to an abstract idea,” and because CellSpin “refus[ed] to analyze its patents critically before filing suit.” The district court thus awarded fees for the entire case. CellSpin appealed.
The Federal Circuit vacated the grant of the motion to dismiss, vacated the attorney fee award, and remanded.
Because the district court erred in dismissing the case under Section 101, the Federal Circuit vacated the attorney fees award. “In the interest of judicial economy, however, [the Federal Circuit] address[ed] certain errors in the district court’s attorney fees analysis that could remain issues on remand.” According to the district court, CellSpin should have filed a “test case” before asserting its patents. But patents granted by the PTO are “presumptively valid.” “To the extent the district court departed from this principle by concluding that issued patents are presumed valid but not presumed patent eligible, it was wrong to do so.” The district court also faulted CellSpin for amending its complaint just a few days before the scheduled hearing on the motion to dismiss. Such amendment did not contribute to making the case exceptional because the amendment was timely under the scheduling order and was “justified” in light of Federal Circuit Section 101 precedent.
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Cellspin Soft, Inc. v. Fitbit, Inc., 927 F.3d 1306 (Fed. Cir. 2019)