Friday, May 11, 2012

Loss of Market Share, "Shutdown" of Product Line and Loss of Exclusive Licensing Deal Establish Irreparable Harm for Preliminary Injunction

The magistrate judge recommended granting plaintiff’s motion for a preliminary injunction regarding plaintiff’s enclosure patent where plaintiff established irreparable harm. "Plaintiff’s owner and co-inventor of [its product] averred that because of its loss of market share, Plaintiff faces a shutdown of [that] product line and perhaps other product lines. Further, without an injunction, Plaintiff has demonstrated it will lose at least one exclusive licensing deal, if not other contracts and sales. Additionally, a financial advisor for Plaintiff submitted an affidavit averring that '[b]ecause of the commercialization of [Defendants’] competing and allegedly infringing product, the value and marketability of [Plaintiff’s] business and product line is being reduced by an unknown amount.' Therefore, based on the record before the Court, the Court concludes Plaintiff has adequately demonstrated that, without an injunction, it will likely suffer irreparable harm."

Marhaygue LLC v. Wolfpac Technologies Inc., et. al., 2-12-cv-00322 (SCD May 9, 2012, Order) (Austin, M.J.)

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