CASE OF THE WEEK

Static Media LLC v. Leader Accessories LLC, Appeal No. 2021-2303 (Fed. Cir. June 28, 2022)

In last week’s only precedential opinion issued in a patent case, the Federal Circuit reversed contempt and sanctions orders entered by the District Court for the Western District of Wisconsin following defendant’s alleged violations of a stipulated protective order governing discovery. This case offers useful guidance for patent litigants contemplating a coordinated defense with similarly-situated parties in other litigation.

The underlying case involved alleged infringement of plaintiff-appellee Leader Accessories’ design patent. Defendant-appellant Static Media had entered into a joint defense agreement with OJ Commerce, another party sued by Leader in Florida for infringement of the same patent. Relying on a provision of the Wisconsin protective order permitting disclosure of designated materials to retained outside consultants, Static and its counsel disclosed to OJ Commerce’s counsel certain designated materials concerning Static’s licensing and sales information as produced in the Wisconsin case. OJ Commerce subsequently relied on that information in assessing a settlement proposal from Static in the Florida action. Because the Wisconsin protective order provided that confidential information and documents “shall be used solely for the purpose of this action,” the district court had found that Static and its attorney violated that order when they disclosed the information to OJ Commerce.

Written by:‎

Nika Aldrich and Scott D. Eads, Schwabe, Williamson & Wyatt

Contributors:‎ Jason Wrubleski