Permanent Injunction (IP)

Permanent Injunction (IP)

Permanent Injunction (IP)

eBay eliminated the presumption of irreparable harm upon a finding of infringement, requiring the four-factor equitable test. Courts weigh irreparable harm, inadequacy of damages, balance of hardships, and public interest.

Non-practicing entities rarely obtain injunctions.

Alternative Names:

IP Permanent Injunction|Injunctive Relief (IP)

Why it Matters?

eBay substantially reduced injunction availability for patentees who do not practice the invention, since a licensing entity's harm is compensable in royalties and damages are therefore adequate, which shifted leverage in patent litigation toward ongoing royalty determinations. Competitor plaintiffs who practice the patent retain a stronger position. Trademark cases received a partial legislative response restoring a rebuttable presumption.

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Frequently asked questions

How did eBay change patent litigation?

How did eBay change patent litigation?

It eliminated the presumption of irreparable harm, which reduced injunction availability for non-practicing entities substantially.

Did trademark law respond?

Did trademark law respond?

Yes. The Trademark Modernization Act restored a rebuttable presumption of irreparable harm in trademark cases.