Uh…Can We Take a Mulligan?

• Posted by Geoffrey G. Gussis on August 8th, 2005


• Filed in Intellectual Property, Litigation

The IP Litigation Law Blog has details on a recent case that shows how "scorched earth litigation tactics" can come back to haunt you - and hit your company where it counts:

"Before suing, it’s a good idea to make sure you have a case. It’s also
a good idea to play by the rules. Lest anyone forget, the Fifth Circuit
Court of Appeals issued 2.7 million “reminders” last week to a company
that brought an ill-considered copyright infringement case against Compaq Computer Corporation.  Apparently, Compaq published an instruction booklet containing 7
phrases and 4 illustrations “similar” to photographs and phrases in a
100 page book published by the copyright owners. The jury agreed with
Compaq that this was de minimis and “fair use” and hence not
copyright infringement. However, because the copyright owners
apparently engaged in scorched earth litigation tactics while ignoring
their own discovery obligations, the court ordered them to pay Compaq’s
attorneys’ fees in the amount of $2.7 million. (Ouch!)"

Link: IP Litigation Law Blog: Uh…Can We Take a Mulligan?.