October 28, 2006
Must patent counsel be paid in a chapter 11 case?
First published October 14, 2004
Can patent counsel assert a state law charging lien against a patent?
In the Engage, Inc. chapter 11 case, pre-petition patent counsel was owed fees for its prosecution of patents. In an attempt to get paid in full, it claimed that it had a charging lien under a Massachusetts chargin lien statute.
Charging liens are state law liens attorneys can assert against the proceeds of a litigation case. The Court, unfortunately for patent counsel, didn't bite. First, the Court held that the appropriate law was Virginia law. This is because patent prosecution cases are before the US Patent & Trademark Office, located in Virginia. Second, the Court held the Virginia charging lien was too narrow to allow a lien for patent prosecution (in dicta, the Court held the Mass. charging lien suffered the same problem). ¶ 3:40 PM
Can patent counsel assert a state law charging lien against a patent?
In the Engage, Inc. chapter 11 case, pre-petition patent counsel was owed fees for its prosecution of patents. In an attempt to get paid in full, it claimed that it had a charging lien under a Massachusetts chargin lien statute.
Charging liens are state law liens attorneys can assert against the proceeds of a litigation case. The Court, unfortunately for patent counsel, didn't bite. First, the Court held that the appropriate law was Virginia law. This is because patent prosecution cases are before the US Patent & Trademark Office, located in Virginia. Second, the Court held the Virginia charging lien was too narrow to allow a lien for patent prosecution (in dicta, the Court held the Mass. charging lien suffered the same problem). ¶ 3:40 PM
