Intellectual Property: Dropbox, Inc. Awarded Exceptional Attorney’s Fees When Counterclaimant’s Trade Infringement Claims Were Found Barred By Laches When Its Trademark Rights Were Found To Be Junior Because Dropbox, Inc. Had Senior Trademark Rights

Ninth Circuit Affirmed Fee Award Of More Than $1.7 Million, Plus $500,000 In Costs.

            In Dropbox, Inc. v. Thru, Inc., Nos. 17-15078/17-15526 (9th Cir. Apr. 25, 2018) (unpublished), defendant Thru had brought counterclaims of trademark infringement against Dropbox, but the claims were found to be barred by laches and Dropbox was found to have senior rights to the “Dropbox” trademark.  The district judge later awarded Dropbox more than $1.7 million in attorney’s fees and $500,000 costs based on finding that Thru’s litigation conduct transformed the case into “exceptional case” warranting such awards under 15 U.S.C. § 1117(a).

            The Ninth Circuit affirmed the merits judgment and fees/costs awards in an unpublished decision.  Among other things referenced its sustaining of the awards, the Ninth Circuit found that Thru filed a frivolous motion to dismiss, gave inaccurate responses to discovery requests, and prosecuted counterclaims wholly lacking in merit given that Thru tried to strategically “slow walk” the dispute to take advantage of Dropbox’s initial public offering.