CLE 123 inc.

Supreme Court Argument - eBay v. MercExchange (Injunctions in Patent Cases)

Facts of the Case

MercExchange patented a design for an online marketplace in which a single company provides the trustworthy framework within which buyers and sellers can negotiate for goods. After negotiations with eBay and Half.com to license the patent failed, MercExchange brought suit in federal district court alleging patent violation under the Patent Act. The jury sided with MercExchange, ruling that its patent had been violated, but the district court judge refused to issue a permanent injunction. The injunction would have forced eBay and Half.com to stop using the contested framework, but the judge applied the traditional four-part test to determine whether an injunction was necessary and found that it was not. That decision was reversed, however, by the U.S. Circuit Court of Appeals for the Federal Circuit, which applied a "general rule that courts will issue permanent injunctions against patent infringements absent exceptional circumstances."

Question

Under the Patent Act, should a permanent injunction always be issued when a patent has been violated, absent exceptional circumstances?

About the Lecturer

Mr. Jeffrey B. Gold Esq.

Jeffrey B. Gold is a partner in the Law Firm of Gold, Stewart, Kravatz, Benes & Stone LLP in Westbury, NY.

Mr. Gold's practice consists of insurance coverage, personal injury and commercial litigation.  He can be reached at (516) 512-6333 or at jgold@goldstewart.com.

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