Monday, March 4, 2013

Inability to Demonstrate Exclusivity to Potential Licensees Supports Imposition of Preliminary Injunction

The court granted plaintiff's motion for a preliminary injunction to preclude defendant from continuing to sell its accused hover discs because plaintiff established irreparable harm. "[Plaintiff] testified that he has been seeking to utilize his Patents for a re-launch of the HoverDisc or a similar toy with other toy manufacturers, but the inability to demonstrate that he can offer an exclusive license for the Patents is preventing him from entering into any deals. [Plaintiff] also testified that [defendant] recently has been producing HoverDiscs of poor quality, thereby diminishing the potential value of [plaintiff's] Patents. . . . To the extent [defendant] incurs damages from ceasing its manufacturing and marketing efforts for the HoverDisc, that harm is self-inflicted and is the natural consequence of its infringing activity. [Defendant] acted without a valid license to exploit the Patents . . . even after [plaintiff] appropriately challenged [defendant's] right to exploit the Patents."

Anderson v. TOL, Inc., 3-12-cv-01312 (TNMD February 28, 2013, Order) (Trauger, J.).

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