Baker v. Deshong

OMSJ filed suit against defendant alleging, inter alia, trademark infringement in violation of the Lanham Act, 15 U.S.C. 1051 et seq., and the Texas Business and Commerce Code. Defendant created two websites to deconstruct the OMSJ's alleged misrepresentation of the effects of HIV and AIDS and allegedly false research that the OMSJ promulgated on its “HIV Innocence Group” webpage. The district court dismissed the Lanham Act claim, declined to exercise pendent jurisdiction over the state law claims, and denied defendant’s subsequent request for an award of attorney’s fees stemming from the allegedly frivolous trademark claims. In light of recent Supreme Court precedent, Octane Fitness, LLC v. Icon Health and Fitness, Inc., which expanded the standard under which a lawsuit presents an “exceptional case” meriting the award of attorney fees, the court reversed and remanded for reconsideration. The court merged Octane Fitness’s definition of “exceptional” into its interpretation of section 1117(a) of the Lanham Act and construe its meaning as follows: an exceptional case is one where (1) in considering both governing law and the facts of the case, the case stands out from others with respect to the substantive strength of a party’s litigating position; or (2) the unsuccessful party has litigated the case in an “unreasonable manner.” The district court must address this issue “in the case-by-case exercise of their discretion, considering the totality of the circumstances.” View "Baker v. Deshong" on Justia Law