AdjustaCam, LLC v. Newegg, Inc., No. 16-1882 (Fed. Cir. 2017)Annotate this Case
AdjustaCam’s patent, which issued in 1999, discloses a camera clip that supports a camera both on a flat surface and when attached to a computer monitor. AdjutaCam’s infringement litigation against Newegg included a Markman order, indicating that AdjustaCam's suit was baseless, and extended expert discovery. Just before summary judgment briefing, AdjustaCam voluntarily dismissed its infringement claims against Newegg with prejudice. Newegg then sought attorneys’ fees under 35 U.S.C. 285. Following a remand in light of intervening Supreme Court precedent clarifying what constitutes an exceptional case, the district court again denied Newegg’s motion for fees. The Federal Circuit reversed. Based on the circumstances presented here, the wholesale reliance on the previous judge’s fact-finding was an abuse of discretion. The record points to this case as standing out from others with respect to the substantive strength of AdjustaCam’s litigating position. Where AdjustaCam may have filed a weak infringement lawsuit, accusing Newegg’s products of infringing the patent, AdjustaCam’s suit became baseless after the district court’s Markman order.