Client Alert
| March 7, 2007
Update On Post-eBay Permanent Injunction Cases
The Supreme Court decided eBay, Inc. v. MercExchange, LLC, 126 S. Ct. 1837 (2006), on May 15, 2006. The eBay decision dispensed with the general rule that permanent injunctions will issue in patent cases absent exceptional circumstances. Instead, the Supreme Court held that courts must apply the traditional four-part test for injunctive relief: (1) irreparable harm; (2) inadequate remedies available at law; (3) the balance of hardships warrants a remedy in equity; and (4) the public interest would not be disserved by an injunction. Since the eBay decision, there have been sixteen published decisions by trial courts applying eBay in a patent permanent injunction context. Based on that sample of cases, eBay has significantly impacted permanent injunction jurisprudence in patent cases. In particular, in each case in which the patentee was not actively competing in the market for the infringing product, a permanent injunction was denied.
This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent.
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