Following the Supreme Court’s decision in eBay, it has become increasingly difficult for parties to obtain a permanent injunction against anyone other than a direct competitor. A judge in the district court for the Eastern District of Virginia has recently held that indirect competition, whereby the patent owner licenses the infringer’s competitor, can be an appropriate circumstance for a permanent injunction. Also of note was the judge’s application of the Federal Circuit’s factored analysis for determining the royalty rate when an injunction is stayed pending appeal. Although the judge denied the stay, he applied the Federal Circuit’s factors to determine the royalty rate that applied before the injunction took effect, i.e., the sunset royalty rate.
December 20, 2011
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