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Eon-Net LP v. Flagstar Bancorp

United States Court of Appeals for the Federal Circuit

July 29, 2011, Decided

2009-1308

Opinion

 [***1524]  [*1316]   Lourie, Circuit Judge.

Lourie, Circuit Judge.

Eon-Net LP ("Eon-Net"), along with its counsel, Zimmerman & Levi, L.L.P. and Jean-Marc Zimmerman (collectively, "Zimmerman"), appeal from the final judgment of the United States District Court for the Western District of Washington in favor of Flagstar Bancorp ("Flagstar"). See Eon-Net LP v. Flagstar Bancorp, No. 2:05-CV-2129, Judgment (ECF No. 200) (W.D. Wash. Jun. 21, 2010) ("Final Judgment"). The judgment follows the district court's entry of the parties' stipulated order of noninfringement of Eon-Net's patents, specifically U.S. Patents 6,683,697 ("the '697 patent"), 7,075,673 ("the '673 patent"), and 7,184,162 ("the '162 patent"), Eon-Net LP v. Flagstar Bancorp, No. 2:05-CV-2129, Stipulation and Order (ECF No. 166) (W.D. Wash. Apr. 6, 2009) [**2]  ("Noninfringement Order"), which the district court entered after it construed the claims of the asserted patents, Eon-Net LP v. Flagstar Bancorp, No. 2:05-CV-2129, 2009 U.S. Dist. LEXIS 24080, Order on Claim Construction (ECF No. 162) (W.D. Wash. Mar. 4, 2009) ("Claim Construction Opinion"). After entering the stipulation, the district court also found  [*1317]  the case to be exceptional under 35 U.S.C. § 285, Eon-Net LP v. Flagstar Bancorp, No. 2:05-CV-2129, 2010 U.S. Dist. LEXIS 143114, Order (ECF No. 188) (W.D. Wash. Jan. 4, 2010) ("Exceptional Case Order"), and that Eon-Net and Zimmerman violated Federal Rule of Civil Procedure 11, Eon-Net LP v. Flagstar Bancorp, No. 2:05CV-2129, 2010 U.S. Dist. LEXIS 58784, Supplemental Order (ECF No. 195) (W.D. Wash. May 17, 2010) ("Supplemental Order on Fees and Costs"); Eon-Net LP v. Flagstar Bancorp, 239 F.R.D. 609, Order (ECF No. 79) (W.D. Wash. 2006) ("Rule 11 Sanctions Order"). The district court awarded Flagstar $489,150.48 in attorney fees and costs pursuant to § 285 and $141,984.70 in sanctions for Eon-Net's and Zimmerman's violation of Rule 11. Supplemental Order on Fees and Costs, 2010 U.S. Dist. LEXIS 58784, *24 .

Because the district court correctly  [**3] construed the claims of the asserted patents, did not commit clear error in its exceptional case finding under 35 U.S.C. § 285, and did not abuse its discretion in invoking Rule 11 sanctions, we affirm.

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653 F.3d 1314 *; 2011 U.S. App. LEXIS 15650 **; 99 U.S.P.Q.2D (BNA) 1522 ***

EON-NET LP, Plaintiff/Sanctioned Party-Appellant, and ZIMMERMAN & LEVI, L.L.P. AND JEAN-MARC ZIMMERMAN, Sanctioned Parties-Appellants, v. FLAGSTAR BANCORP, Defendant-Appellee.

Subsequent History: Rehearing denied by, Rehearing, en banc, denied by Eon-Net LP v. Flagstar Bancorp, 2011 U.S. App. LEXIS 26447 (Fed. Cir., Sept. 27, 2011)

US Supreme Court certiorari denied by Zimmerman v. Flagstar Bancorp, 132 S. Ct. 2391, 182 L. Ed. 2d 1020, 2012 U.S. LEXIS 3458 (U.S., 2012)

Prior History:  [**1] Appeal from the United States District Court for the Western District of Washington in Case No. 05-CV-2129, Judge Ricardo S. Martinez.

Eon-Net, L.P. v. Flagstar Bancorp, Inc., 2010 U.S. Dist. LEXIS 143114 (W.D. Wash., Jan. 4, 2010)Eon-Net, L.P. v. Flagstar Bancorp, Inc., 2009 U.S. Dist. LEXIS 24080 (W.D. Wash., Mar. 4, 2009)Eon-Net, L.P. v. Flagstar Bancorp, Inc., 239 F.R.D. 609, 2006 U.S. Dist. LEXIS 95720 (W.D. Wash., 2006)

Disposition: AFFIRMED.

CORE TERMS

district court, patent, hard copy, written description, documents, exceptional case, invention, originating, input, processing, infringement, baseless, sanctions, extract, costs, terms, attorney's fees, specification, format, misconduct, settlement, argues, patentee, portions, alleged infringement, instructions, lawsuits, asserted claim, bad faith, noninfringement

Patent Law, Jurisdiction & Review, Standards of Review, De Novo Review, Claims, Claim Language, General Overview, Infringement Actions, Claim Interpretation, Claim Differentiation, Damages, Collateral Assessments, Attorney Fees, Evidence, Relevance, Preservation of Relevant Evidence, Spoliation, Civil Procedure, Discovery & Disclosure, Sanctions, Baseless Filings, Certification Requirements