Justia Government Contracts Opinion Summaries

The Navy began a program to design and build littoral combat ships (LCS) and issued a request for proposals. During the initial phase of the LCS procurement, FastShip met with and discussed a potential hull design with government contractors subject to non-disclosure and confidentiality agreements. FastShip was not awarded a contract. FastShip filed an unsuccessful administrative claim, alleging patent infringement. The Claims Court found that the FastShip patents were valid and directly infringed by the government. The Federal Circuit affirmed.The Claims Court awarded FastShip attorney’s fees and expenses ($6,178,288.29); 28 U.S.C. 1498(a), which provides for a fee award to smaller entities that have prevailed on infringement claims, unless the government can show that its position was “substantially justified.” The court concluded that the government’s pre-litigation conduct and litigation positions were not “as a whole” substantially justified. It unreasonable for a government contractor to gather information from FastShip but not to include it as part of the team that was awarded the contract and the Navy took an exceedingly long time to act on FastShip’s administrative claim and did not provide sufficient analysis in denying the claim. The court found the government’s litigation positions unreasonable, including its arguments with respect to one document and its reliance on the testimony of its expert to prove obviousness despite his “extraordinary skill.” The Federal Circuit vacated. Reliance on this pre-litigation conduct in the fee analysis was an error. View "FastShip, LLC v. United States" on Justia Law

Hitkansut owns the patent, entitled “Methods and Apparatus for Stress Relief Using Multiple Energy Sources.” While the application that later issued as that patent was pending, Hitkansut entered into a non-disclosure agreement with Oak Ridge National Laboratory (ORNL) and provided ORNL with a copy of the then-unpublished patent application. ORNL staff prepared research reports, received funding, authored publications, and received awards for research, based upon unauthorized use of the patent. Hitkansut sued ORNL, alleging infringement under 28 U.S.C. 1498. The Claims Court determined that certain claims of the patent were invalid but that other claims were valid and infringed. Although Hitkansut originally sought a royalty between $4.5-$5.6 million, based on a percentage of the research funding obtained by ORNL, the Claims Court awarded $200,000, plus interest, as the hypothetically negotiated cost of an up-front licensing fee. The Federal Circuit affirmed.Hitkansut then sought attorneys’ fees and expenses under 28 U.S.C. 1498(a). The Claims Court awarded $4,387,889.54.The Federal Circuit affirmed. Section 1498(a) provides for the award of attorneys’ fees under certain conditions, unless “the court finds that the position of the United States was substantially justified.” The “position of the United States” in this statutory provision refers to positions taken during litigation and does not encompass pre-litigation conduct by government actors, but the examples of conduct cited by the Claims Court demonstrate that the position of the United States was not substantially justified even under this narrow definition View "Hitkansut LLC v. United States" on Justia Law

Liberty’s 325 patent, issued in 2010, is “directed to a projectile structured to be discharged from a firearm and designed to overcome the disadvantages and problems associated with conventional firearm projectiles such as, but not limited to lead or steel jacketed projectiles.” The patent grew out of the U.S. military’s “Green Ammunition Program,” developed in response to concerns that lead-based ammunition was polluting military training ranges. The 325 patent sought to address “problems of lethality” with the conventional Army “green” ammunition. The Claims Court held that ammunition rounds used by the Army embody the claims of the patent, violating 28 U.S.C. 1498. The Federal Circuit reversed, holding that the trial court erred in construing claim terms: reduced area of contact; intermediate opposite ends. When the terms are construed correctly, the Army rounds do not embody the claimed invention. The court affirmed the Claims Court's rejection of a breach of contract claim based on a non-disclosure agreement signed by the named inventor of the 325 patent and an Army official during negotiations for a possible contract. The Army official did not have authority to enter into an NDA on behalf of the government. View "Liberty Ammunition, Inc. v. United States" on Justia Law

Astornet alleges that it is sole exclusive licensee and owner of all rights in the 844 patent, issued in 2009 to Haddad as the inventor and entitled “Airport vehicular gate entry access system” and asserted the patent against NCR, MorphoTrust USA, and BAE Astornet alleged that the three had contracts with the Transportation Security Administration (TSA) to supply boarding-pass scanning systems; that TSA’s use of the equipment infringed and would infringe the patent; and that NCR and MorphoTrust were bidding for another contract to supply modified equipment whose use by TSA would also infringe. The Federal Circuit affirmed dismissal, finding that Astornet’s exclusive remedy for the alleged infringement was a suit against the government in the Court of Federal Claims under 28 U.S.C. 1498. View "Astornet Techs., Inc. v. BAE Sys., Inc." on Justia Law

Zoltek’s patent, "Controlled Surface Electrical Resistance Carbon Fiber Sheet Product" concerns manufacturing carbon fiber sheets with controlled surface electrical resistivity. The filters were used in F-22 fighter jets, which Lockheed designed and built under government contract. Zoltek claimed infringement in a 1996 suit against the U.S. under 28 U.S.C. 1498(c). The Federal Circuit held that the statute did not waive sovereign immunity because the manufacturing process began in a foreign country and that Zoltek could not allege patent infringement as a taking under the Tucker Act. On remand, the court allowed Zoltek to add a claim against Lockheed under 35 U.S.C. 271(g) and transfer the case. The Federal Circuit court reconsidered its earlier decision and concluded that suit against the government is not barred and that 1498(c) does not apply to this case because the infringement was based on activities in the U.S. An independent cause of action is available under 28 U.S.C. 1498(a) for direct infringement by the government or its contractors that is not dependent on 35 U.S.C. 271(a). When the government is subject to suit under 1498(a) for alleged infringement by a contractor, the contractor is immune from individual liability. View "Zoltek Corp. v. United States" on Justia Law