Federal Circuit Affirms $3.2M Attorney Fee Award Against Patent Owner in Carnegie v. Fenix
The CAFC affirmed a district court's decision holding a patent owner and its licensee jointly and severally liable for $3,240,669.66 in attorney fees and expenses, finding the infringement claims became objectively baseless after receiving discovery.
WISECODE Take
The Federal Circuit's decision in Carnegie v. Fenix (Case No. 24-1804) on September 17, 2026, warns patent owners that pursuing meritless claims can lead to paying the opponent's attorney fees. The court held Carnegie and its licensee jointly liable for $3,240,669.66 because they continued litigating after discovery on July 14, 2020, proved their case baseless. First, companies must assess whether to withdraw claims immediately when discovery contradicts claim construction. Second, patent licensing agreements should clearly limit litigation risk and control for passive owners.
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