Site Update v. CBS is a nonprecedential case decided on February 1, 2016 on appeal from the Northern District of California. There, after plaintiff Site Update and defendant Newegg agreed to dismiss the claims between them, the district court, applying Octane Fitness, denied Newegg’s request for attorney’s fees under § 285. Newegg appealed.
The Federal Circuit affirmed the denial of attorney fees.
Under Octane Fitness, a district court “may determine whether a case is exceptional in the case-by-case exercise of their discretion, considering the totality of the circumstances.” “The movant must show exceptionality by preponderant evidence.”
Newegg claimed the case was exceptional because Site Update’s complaint and infringement contentions were at all times frivolous; because Site Update failed to present a cogent argument as to the supporting structure for the asserted means-plus-function claim; and because Site Update extracted nuisance settlements as a business model. Despite these claims, the Federal Circuit deferred to the district court, affirming the rejection of attorney fees.
Emphasizing the standard of review, the Federal Circuit rejected the appellant’s urging of a de novo type review. Rather the Federal Circuit noted that its review authority was limited to “whether a district court’s findings [were] supported by evidence and sound reasoning.” And here, the district court gave eight reasons for denying attorney fees. Essentially, Site Update’s case, though weak, was not so unreasonable as to warrant fees (the district court found it persuasive that Site Update abandoned its reliance on its unreasonable constructions when given the opportunity to do so).
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