JON P. McCALLA, District Judge.
This Court previously determined that Plaintiff WCM Industries, Inc.'s ("WCM") "is entitled to certain reasonable attorneys' fees based on [Defendant IPS Corporation's ("IPS")] conduct with regard to providing notice of the permanent injunction to its distributors and manufacturer's representatives," pursuant to 35 U.S.C. § 285, which entitles the prevailing party to reasonable fees in an exceptional patent infringement case. (ECF No. 716 at 7, PageID 40670.)
Following the Court's determination, WCM submitted affidavits and documentation in support of its request for attorneys' fees. (ECF Nos. 723-26, PageIDs 40693-727.) The parties then submitted memoranda with respect to the reasonableness of WCM's requested fees; IPS objected to the allowance of certain fees claimed by WCM. (ECF Nos. 730-31. PageIDs 40734, 40740.)
For the following reasons, the Court awards WCM $60,535.50 in attorneys' fees; $27,920.43 in post-judgment interest, which includes interest on the attorneys' fee award; and $153,476.00 in sunset period royalties.
This case arises from WCM's allegations of patent infringement against IPS. A jury trial was held over ten days between October 13, 2015, and October 27, 2015. (Min. Entries, ECF Nos. 430, 432-34, 439, 441, 444, 447, 451, 453.) On October 27, 2015, the jury returned a verdict for WCM, finding that IPS had willfully infringed the asserted claims and that the asserted claims were not invalid. (
On May 27, 2016, WCM filed a motion for exceptional case and award of fees. (ECF No. 602, PageID 38978.) On August 26, 2016, the Court granted WCM's motion for exceptional case and attorneys' fees, finding "that IPS's failure to clarify its ability to communicate the notice letter and Permanent Injunction order to all its distributors and manufacturer's representatives and the delay IPS created in providing the requisite notice is objectively unreasonable and resulted in vexatious litigation." (ECF No. 716 at 11-12, PageID 40674-75.) The Court also awarded post-judgement interest on the award of attorneys' fees. (
On September 6, 2016, WCM filed exhibits and declarations in support of sunset period royalties and attorneys' fees. (ECF Nos. 718, PageID 40681; 721, PageID 40689; 723-26, PageIDs 40693-727.) On September 8, 2016, IPS responded in opposition to WCM's documentation and amount of attorneys' fees, contending the fees WCM claimed were "beyond the scope of [the Court's] award." (ECF No. 730, PageID 40734.)
WCM seeks attorneys' fees totaling $60,535.50 for work relevant to enforcement of the Permanent Injunction, including "preparation and filing WCM's original and renewed motions to enforce the Permanent Injunction and relevant briefing" (ECF No. 723, PageID 40693) and related hearings. (
Courts generally use a "lodestar" method to determine an attorneys' fees award.
Before the court determines the lodestar amount, the party seeking fees bears the initial burden of establishing the hours expended by providing detailed time records that document the tasks completed and the amount of time spent.
Courts in this circuit have reduced attorney fees on the basis of insufficient billing descriptions where the attorney did not "maintain contemporaneous records of his time or the nature of his work,"
On the other hand, the Sixth Circuit Court of Appeals has upheld an award of attorney fees and found billing records to be adequate where entries made by counsel "were sufficient even if the description for each entry was not explicitly detailed."
Therefore, "[c]ounsel need not record in great detail each minute he or she spent on an item, [just] the general subject matter should be identified."
Additionally, "a district court itself has experience in determining what are reasonable hours and reasonable fees, and should rely on that experience and knowledge if the documentation is considered inadequate."
Once a court determines the hours and rate, it can calculate the lodestar amount, and then it may make adjustments on the final award based on twelve factors:
The Court finds that WCM has made "a good faith effort to exclude from [its] fee request hours that are excessive, redundant, or otherwise unnecessary."
For its first argument, IPS contends that WCM's fees related to third-party subpoenas fall outside the scope of the Court's Order because they were sent after the sunset period elapsed and after August 9, 2016, by which time IPS claims it already notified all required parties.
First, the sunset royalty period is separate and distinct from the award of attorneys' fees in this case; thus, WCM is not precluded from requesting fees accrued after the sunset period elapsed.
Second, the Court noted that "as of August 24, 2016, it still was not ascertainable whether every asserted distributor and manufacturer's representative of IPS's had received notice of the Permanent Injunction." (ECF No. 716 at 9 n.3, PageID 40672.) Moreover, even as of August 24, 2016, IPS had not sent WCM an "as received copy" of the third notice letter referenced in one declaration. (ECF No. 716 at 11, PageID 40674 (citing ECF No. 706).) Therefore, WCM's efforts to subpoena third-parties to resolve IPS's inadequate notice between August 9, 2016, to August 24, 2016, fall squarely within the scope of the Court's order.
For its second argument, IPS asserts that the Court should not fully grant WCM fees where the narrative is partially redacted, because "it is unclear how the portion relevant to the Court's order was calculated." (ECF No. 730 at 4, PageID 40738.) The Court disagrees. Despite WCM's partial redactions, the entries are "sufficient even if the description for each entry was not explicitly detailed,"
For the above reasons, the Court finds that WCM's submitted sufficient documentation of its fees, which properly relate to IPS's conduct with regard to providing notice of the Permanent Injunction to its distributors and manufacturer's representatives, and that the hours expended appropriately reflect the work described.
The hourly rates claimed by counsel are also reasonable. WCM's rates range from $100 to $575 per hour, depending on the individual doing the work. (ECF Nos. 724-26, PageIDs 40696-728.) The Court finds that these rates are commensurate with those charged by other patent litigators across the country.
Therefore, the Court finds the hourly rates submitted by WCM reasonable.
This Court previously considered discretionary factors in determining the award of attorneys' fees to WCM. (
The Court finds that WCM's submitted hours and rates are reasonable, and that an Amended Judgment reflecting an award of $60,535.50 in attorneys' fees should be entered.
In its August 26, 2016 Order regarding WCM's motion for an exceptional case, the Court awarded WCM attorneys' fees related to IPS's notice of the Permanent Injunction, and ordered IPS to pay post-judgment interest on such fees. (
The total post-judgment interest will be the summation of the interest on the attorneys' fees and the interest on the previous money judgments. (
In its Permanent Injunction Order, the Court ordered IPS to pay royalties to WCM for infringing units sold during the sunset period. (ECF No. 614 at 3, PageID 39207.) The parties have conferred and agree that IPS should be ordered to pay $153,476.00 in sunset period royalties. (
For the above reasons, the Court awards WCM attorneys' fees in the amount of $60,535.50, post-judgment interest in the amount of $27,920.43, and sunset period royalties in the amount of $153,476.00.
The Court determined the post-judgment interest of the money judgments in this case by first multiplying the accumulative money judgment amount of compensatory damages, enhanced damages, costs, sunset period royalties, and pre-judgment interest times the Federal Reserves Interest Rate for 1-year Treasury Constant Maturities, as of September 27, 2016. This Annual Interest Amount was then divided by 365 days to determine the Daily Interest Amount. Finally, the Daily Interest Amount was multiplied by the Accumulated Days since the Judgment on Jury Verdict, entered December 4, 2015 (ECF No. 478, PageID 33154.). The same calculation was done with Attorneys' Fees, using the Attorneys' Fees award and the Accumulated Days since the Court's August 26, 2016 Order granting attorneys' fees (ECF No. 716, PageID 40664). The Court then added the accumulative money judgment post-judgment interest to the Attorneys' Fees Award post-judgment interest to determine the total post-judgment interest due to WCM.