This is Part 4 of a multipart blog series on cost recovery.
Soon after Race Tires was decided in the Third Circuit, the Court of Appeals for the Federal Circuit addressed the issue in the patent infringement case CBT Flint Partners, LLC v. Return Path, Inc. and Cisco Ironport Systems, LLC, 737 F.3d 1320 (Fed. Cir. 2013).
As the prevailing party, Cisco then moved to recover costs, including those paid to vendors for eDiscovery tasks. Reasoning that eDiscovery tasks were the modern equivalent of making copies, the district court ultimately awarded costs to Return Path and Cisco of more than $33,000 and $243,000, respectively, in fees paid to their eDiscovery vendors.
CBT Flint appealed to the Court of Appeals for the Federal Circuit, which interpreted 28 U.S.C. § 1920(4) much as the Third Circuit did, deciding that the statute prohibits broad recovery of costs associated with modern eDiscovery.
For a more complete discussion of CBT Flint and its impact, click here to download the Modus/Reed Smith white paper Pursuing eDiscovery Cost Recovery.