WPEM filed a complaint against SOTI alleging that SOTI’s MobiControl Speed Lockdown technology infringed U.S. Patent No. 9,148,762. WPEM alleged infringement based upon its review of a user manual for version 11 of Speed Lockdown. When it answered the complaint, SOTI pointed out that version 10 of Speed Lockdown predated the asserted patent and was invalidating prior art.
After various demands to settle from WPEM that continually went down in amount, SOTI continued to refer to the prior version of the user manual and sent a Rule 11 letter explaining that the complaint was frivolous, among other things. Ultimately, WPEM offered to dismiss the complaint with prejudice in exchange for SOTI not pursuing attorney’s fees.
When SOTI did not agree to this offer, WPEM file a motion for voluntary dismissal pursuant to Rule 41(a)(2). SOTI did not oppose the motion to dismiss but asserted that it should be required to bear its own fees and costs. After the case was dismissed, SOTI file a motion for a determination that the case was exceptional and sought its attorney’s fees.