Permanent Injunction Denied in Patent Case Where Alleged Injury is to the Licensee

Law360, New York (September 11, 2006, 12:00 AM EDT) -- In May of this year, the U.S. Supreme Court ruled in eBay Inc. v. MercExchange LLC that a permanent injunction was not automatic for successful patentees; rather, it mandated the use of a four-factor test that included demonstrating irreparable harm and that monetary damages would not be adequate.

Writing for a unanimous court, Justice Thomas noted that “some patent holders, such as university researchers or self-made inventors, might reasonable prefer to license their patents … [and that] [s]uch patent holders may be able to satisfy the...
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