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Idaho District Court Imposes First-Ever Bond Order Under the State's Bad Faith Assertions of Patent Infringement Act
On May 3, 2023, Judge David C. Nye of the U.S. District Court for the District of Idaho issued an order in Katana Silicon Technologies v. Micron Technology, 671 F.Supp.3d 1138 (D. Idaho 2023) and Micron Technology v. Longhorn IP, No. 1:22-cv-00273-DCN (D. Idaho July 5, 2022) (collectively, the litigations), imposing the first-ever bond order under Idaho's Bad Faith Assertions of Patent Infringement Act (the Act).
In that order, the court required patent owner Katana Silicon Technologies (Katana) or its parent company, Longhorn IP LLC (Longhorn), to post an $8 million bond before allowing Katana to proceed with its patent infringement suit against Micron Technology Inc. (Micron), further denying both Katana and Longhorn's motions to dismiss. Katana and Longhorn have since appealed to the U.S. Court of Appeals for the Federal Circuit, where the appellate panel will consider Katana and Longhorn's preemption challenge to the Act and its bond provision. Oral argument in the appeal has not yet been scheduled.
Currently, more than 30 states have statutes targeting bad faith patent litigation, the constitutionality of which has gone largely unchallenged. Brief of Respondent-Appellee Micron at 1, Micron Technology v. Longhorn IP, No. 23-2007 (Fed. Cir. May 28, 2024), 2024 WL 2859226; Brief of Petitioner-Appellant at 1, Micron Technology v. Longhorn IP, No. 23-2007 (Fed. Cir. Feb. 22, 2024). As a result, the litigations have drawn extensive interest from state attorneys general across the country.
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