Allure Home Creation Co. v. Zak Designs, Inc.
Docket: No. 2006-1433
Court: Court of Appeals for the Federal Circuit; May 11, 2007; Federal Appellate Court
Allure Home Creations Co. Inc. (Allure) initiated a lawsuit against Zak Designs, Inc. (Zak) for patent infringement involving United States Patent No. 6,155,411 (the ‘411 patent). In response, Zak counterclaimed, seeking declarations of invalidity, non-infringement, and unenforceability due to alleged inequitable conduct, as well as attorneys’ fees under 35 U.S.C. 285. The matter was settled when Allure provided a covenant not to sue Zak for any related products as of the covenant's date. Consequently, the district court dismissed Zak’s counterclaims with prejudice and denied the request for attorneys’ fees. Zak appealed these rulings. The appellate court affirmed the district court's denial of attorneys’ fees but found an error in the dismissal of Zak’s counterclaims with prejudice. As a result, the court reversed this aspect of the district court's ruling and remanded the case, instructing the district court to dismiss Zak’s counterclaims without prejudice.