Advanced Magnetic Closures, Inc. v. Rome Fastener Corp., No. 09-1102, concerned a patent infringement suit, related to patents for disclosing a magnetic snap fastener commonly used in women's handbags. In affirming in part, the court held that the district court was correct in holding the '773 patent unenforceable as the plaintiff and its president attempted to defraud the PTO. The court also held that the district court did not err in finding that this case was an exceptional case under 35 U.S.C. section 285 justifying an award of attorney's fees. However, the court reversed in part in holding that the district court abused its discretion by sanctioning plaintiff's attorney under 28 U.S.C. section 1927 as the court failed to find that the attorney acted in bad faith.
Stobie Creek Inv. LLC. v. US, No. 08-5190, concerned a challenge to the Court of Federal Claims' decision upholding the Notices of Final Partnership Administrative Adjustment determinations and associated penalties in a tax refund suit involving the "Son of BOSS" tax shelter. In affirming the judgment, the court held that the district court properly disregarded a series of transactions under the economic substance doctrine, that the plaintiff was properly subject to accuracy-related penalties under 26 U.S.C. section 6662, and that the reasonable-cause defense in 26 U.S.C. section 6664(c)(1) does not apply because it was not reasonable for plaintiff to rely on the advice of professionals in promoting and implementing the tax shelter. Furthermore, the court held that the testimony of plaintiff's expert was properly excluded under Federal Rule of Evidence 702.
- Full text of Advanced Magnetic Closures, Inc. v. Rome Fastener Corp
- Full text of Stobie Creek Inv. LLC. v. US