Dragon Intellectual Property v. DISH Network was decided on April 21, 2020 on appeal from the District of Delaware. After plaintiff Dragon sued defendant DISH for patent infringement, Dish filed a petition seeking inter partes review of the asserted patent. Following a claim construction hearing at the district court, the court entered a judgment of noninfringement. The Board issued a final written decision holding unpatentable all asserted claims. On appeal, the Federal Circuit affirmed the Board’s finding of invalidity and dismissed the noninfringement appeal as moot. The district court on remand vacated the judgment of noninfringement as moot and denied DISH’s motion for attorney fees, finding that DISH was not a prevailing party because it was not granted “actual relief on the merits.” DISH appealed.
The Federal Circuit vacated and remanded the denial of attorney fees.
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“[A] defendant can be deemed a prevailing party even if the case is dismissed on procedural grounds rather than on the merits.” Here, DISH “succeeded in invalidating the asserted claims before the Board.” After the Federal Circuit affirmed the Board’s decision, the district court vacated the judgment of noninfringement as moot. Therefore, DISH “successfully rebuffed Dragon’s attempt to alter the parties’ legal relationship in an infringement suit.” “The judgment of noninfringement was vacated only because [DISH] successfully invalidated the asserted claims in a parallel inter partes review proceeding, rendering moot Dragon’s infringement action.” The Federal Circuit thus held that DISH was a prevailing party and vacated the decision denying attorney fees.