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19 Stan. Tech. L. Rev. 329 (2015-2016)
Octane Fitness: The Shifting of Patent Attorneys' Fees Moves into High Gear

handle is hein.journals/stantlr19 and id is 345 raw text is: 












      OCTANE FITNESS: THE SHIFTING OF PATENT

      ATTORNEYS' FEES MOVES INTO HIGH GEAR


                                Scott   M.   Flanz     *'*


                      CITE  AS: 19 STAN.  TECH.  L. REV. 329 (2016)

          In 2014, the United States Supreme Court decided Octane Fitness. LLC v. ICON Health
     & Fitness, LLC, significantly altering the standard for granting attorneys'fees shifting at the
     close of a patent litigation. Combine with precedent announced  on the same  day
     in Highmark Inc. v. Allcare Health Management Systems, scholars have opined that under
     the new regime, the standard for proving entitlement to attorneys'fees in patent litigations
     will be considerably relaxed. Despite the widespread acceptance of the viewpoint, few
     empirical analyses-if any-have objectively confirmed it.
          This paper provides a first glimpse into whether the Supreme Court's decision
     in Octane changed the attorneys'fees standard in practice. By investigating the rate at which
     courts have granted attorneys'fees motions before and after Octane, broken down by whether
     the movant was a patentee or accused infringer, the technology of the patent asserted, the
     circuit and district where the suit was decided, and what factors were considered by each
     court in its opinion, this research confirms that Octane's reinterpretation of §285 has had
     observable effects. In particular, this study finds a statistically significant increase in the rate
     of attorneys'fee shifting after Octane, particularly for motions filed by accused infringers
     and in motions concerning electronics and software patents. The results of this study shed
     light on meaningful and recent changes to the patent litigation incentive structure and will be
     helpful in predicting future changes to the patent litigation landscape.











       I  Mr. Flanz is an associate at Skadden, Arps, Slate, Meacher & Flom in New York. The
views expressed in the article are his own and not necessarily the views of Skadden, Arps or any
one or more of its clients.
      I   Stanford Law  School I I.D. 2015; Cornell University: College of Arts & Sciences
Mathematics  & Physics I A.B. 2012. Mr. Flanz would like to thank Professor Mark A. Lemley
for his guidance and suggestions in crafting this paper from its inception to its publication.
Mr. Flanz would  also like to thank his parents Jacob and Nancy Flanz for their support and
comments  throughout  the writing process.


329

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