Background
The case originated in the United States District Court for the Western District of Texas as a patent dispute between Bayerische Motoren Werke Aktiengesellschaft and Onesta IP, LLC. On appeal, the appellee moved to dismiss the case, and the appellant agreed that dismissal was appropriate due to a settlement with a third party.
The court’s reasoning
The court noted that the appeal had become moot by way of a settlement agreement. The appellant requested that each side bear its own costs, while the appellee requested costs under the default rule of Federal Rule of Appellate Procedure thirty-nine, arguing that the appellant unnecessarily prolonged the proceedings.
What it means going forward
The dismissal resolves the appeal without a decision on the merits, leaving the district court judgment in place while shifting litigation costs to the appellant.