Tuesday, January 12, 2010

Loss of Market Share and "Sole Provider" Status Warrant Permanent Injunction Even Where Defendant Ceases Production of the Infringing Product

The court granted plaintiff's motion for a permanent injunction in light of eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388, 391 (2006), even though defendant had ceased manufacturing the infringing product and argued that a redesigned product did not infringe. With respect to irreparable injury, "Plaintiff has demonstrated it lost market share, the right to control its patent license agreement, and its competitive advantage as a result of Defendants’ conduct. These losses are sufficient to demonstrate irreparable injury." With respect to adequacy of legal remedies "Plaintiff lost its status as the sole provider of soft shell pain pumps. . . . [and] [t]hat is an injury from which Plaintiff is unlikely to recover, and is one that is not amenable to a legal remedy." With respect to public interest, "Plaintiff identifies three public interests that would be served by an injunction: The interest in maintaining a strong patent system, the interest in fair and healthy competition, and the interest in discouraging future wrongdoing.' The Court agrees with Plaintiff that these interests would be served by an injunction in this case."

I-Flow Corporation v. Apex Medical Technologies, Inc., 3-07-cv-01200 (CASD January 8, 2010, Order) (Sabraw, J.)

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