35 U.S.C. § 283

Issues

In 2003, a jury found that eBay, an online auction website, was violating various patents owned by MercExchange. The district court nevertheless refused to issue a permanent injunction that would have barred eBay from continuing to use the patented methods. The Federal Circuit of Appeals granted the injunction against eBay and held that permanent injunctions were the “general rule” in patent infringement cases. The Supreme Court granted certiorari to decide whether a patentee has an automatic right to a permanent injunction after a finding of infringement. If the Court upholds the “near-automatic injunction rule,” then patent holders will have a powerful remedy that can give them tremendous leverage in litigation. However, upholding the rule may also make it easier for “patent trolls” to continue benefiting from genuine innovators. If the Court instead finds that patent holders do not automatically have the right to an injunction, infringers will be able to continue using the patented product, thereby subverting the purposes of patent law. Not granting automatic injunctions may also encourage more patent infringement. How the Supreme Court decides the case will depend on its interpretation of important precedents and how it weighs these important social implications.

Questions as Framed for the Court by the Parties

Additional Resources