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A California federal judge has ordered attorney Stephen Lobbin to personally cover $652,000 of a hefty $1.8 million sanction levied against his client, Iconic Mars Corp., after the company lost a bruising trade dress infringement fight against Canadian rival Kaotica Corp.

U.S. District Judge Cathy Ann Bencivengo said in a scathing order Monday that Lobbin, of SMLL Avvocati PC, repeatedly twisted the terms of a prior settlement to prop up a “meritless” legal theory—conduct she described as reckless, misleading, and corrosive to courtroom integrity.

From Settlement to Showdown

Iconic Mars launched its 2022 lawsuit seeking a ruling that its “New Comet” microphone didn’t copy the design of Kaotica’s Eyeball device and didn’t breach a 2021 stipulated judgment tied to Iconic’s earlier “Old Comet” model.

But in June 2024, a jury found Iconic willfully infringed Kaotica’s trade dress. Judge Bencivengo later confirmed Kaotica had not interfered with Iconic’s sales, further weakening Iconic’s position.

Court Finds Misrepresentations

The judge said Lobbin falsely told the court that Iconic had stopped using the “Old Comet” by January 2022, a claim later shattered by Kaotica’s evidence. Worse, his arguments contradicted his own client’s sworn testimony and discovery responses.

She blasted Lobbin for ignoring warnings to stop offering irrelevant and misleading evidence, and for filing a “frivolous” posttrial motion based on a single line of dicta.

“The case should never have gone to trial,” Bencivengo wrote, noting that Lobbin pursued the action in bad faith, essentially fueling his client’s continued infringement.

Financial Ability in Question

Though Lobbin argued he could only afford $50,000, Kaotica presented evidence that his annual income consistently tops $400,000. The judge ultimately concluded $652,000 was an appropriate penalty for his role in dragging the dispute forward.

Lobbin Defends His Conduct

In a statement, Lobbin insisted his firm had represented Iconic Mars pro bono, arguing they had reasonably interpreted the 2021 settlement.

“Our American system of zealous advocacy relies on timely rulings from judges when disputes arise,” Lobbin said. “We have faith in God and the appeals process to ensure fair justice ultimately prevails.”

A Kaotica representative declined to comment. Iconic Mars continues to be represented by Adrian Lyons, Joshua Osborn, and Lobbin of SML Avvocati PC.