Boston, MA 09/19/2014 (wallstreetpr) – Alcatel Lucent SA (ADR) (NYSE:ALU) was approved of gaining attorneys’ fees from Chalumeau Power Systems LLC, after winning a patent breach lawsuit.
Frivolous Lawsuit
A Delaware federal court had announced its verdict in favor of Alcatel Lucent in a patent breach lawsuit, on Sept 12. The case was filed against it by Chalumeau, which claimed that Alcatel had infringed one of its patents. The court’s ruling suggested that Chalumeau’s intention for filing the case was only to extort a settlement fee from Alcatel. Alcatel Lucent SA (ADR) (NYSE:ALU)’s litigation scheme aimed at causing Alcatel Lucent SA (ADR) (NYSE:ALU) to bear fees while Chalumeau itself would not have to incur any expenses. A Bloomberg article, quoting the judgment, also highlighted that Chalumeau did not even unveil an expert until days ahead of the end of fact discovery. The company shared the information first on Nov 8, 2013.
Paying For Improper Conduct
Acacia Research Corp (NASDAQ:ACTG) owned Chalumeau ensured to keep its expenses low while urging its contender to incur a significant amount of money in fighting a frivolous case. Chalumeau’s behavior urged the judge to allow Alcatel Lucent SA (ADR) (NYSE:ALU) attorneys’ fees. Acacia Research Corporation operates through several subsidiaries and is engaged with the development, licensing and enforcement of patented technologies. Alcatel was represented by Goodwin Procter LLP. The court’s decision followed the April verdict of the U.S. Supreme Court. According to the judgment, companies that win “unreasonable” patent cases hold the right to get their attorneys’ fees paid.
In addition to the payment of the legal fees, the high court also authorized trial judges the right to charge additional fees in special cases, which relied on the behavior of the losing party. The new authorization was endowed on trial judges on April 29 last year. In such cases, the court imposed additional rules, restricting the potential of an appeals court to overrule a decision ordered by a trial judge.
