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Judge Thynge awards costs to defendant as “prevailing party” after upholding jury verdict of non-infringement, but reversing jury’s invalidity verdict

In United Access Technologies, LLC v. Earthlink, Inc. C.A. No. 02-272-MPT (D. Del. June 14, 2012), Judge Thynge recently considered defendant’s bill of costs submitted after the Court’s opinion, that reversed the jury’s verdict as to invalidity but upheld the jury’s verdict of non-infringement, was affirmed on appeal. Id. at 1-3. Plaintiff objected to defendant’s bill of costs arguing, among other things, that defendant was not the prevailing party because defendant was unsuccessful on its counterclaim of invalidity. Id. at 4 Judge Thynge disagreed. Defendant was the prevailing party because the relief it received on the merits, i.e., that it did not infringe plaintiff’s patent and was free to continue operating its DSL business, altered the legal relationship between the parties. Id. at 9. It was irrelevant that defendant was unsuccessful on its invalidity counterclaims. Because plaintiff’s patent is presumed valid, the court’s finding that defendant failed to carry its burden to prove invalidity did not “materially alter the legal relationship between the parties by modifying [defendant’s] behavior in a way that directly benefitted [plaintiff.]” Id.


United Access Technologies, LLC v. Earthlink, C.A. No. 02-272-MPT (D. Del. June 14, 2012)

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