In Expanding Market, Long-Term and Second-Order Effects of Lost Sales Create Irreparable Harm Justifying Preliminary Injunction

The court granted plaintiff's motion for a preliminary injunction to prohibit defendant from selling the accused removable wafer carrier products and found that plaintiff established irreparable harm. "Although [plaintiff] may be able to prove with requisite certainty its losses due to lost sales, lost customers, or price erosion in the past or near-term future, the long-term and second-order effects . . . are not likely to be quantifiable with a requisite degree of certainty. . . . [Plaintiff's] loss of customer feedback will hamper its ability to continue innovating its MOCVD designs to remain competitive in the MOCVD market . . . . [Plaintiff's] loss of revenue in the near term, combined with asset impairments and other potential losses of goodwill and market share, will impair [plaintiff's] ability to invest in research and development . . . . Due to the incumbency effects of the MOCVD market, [plaintiff's] lost sales in the near term will hamper its ability to obtain further sales from the same customer going forward, yet those future sales will be extremely difficult to determine with the certainty required to obtain money damages. In addition, the medium- and long-term effects of [plaintiff's] lost market share and other competitive harms will be especially difficult to quantify at trial because the MOCVD reactor market is entering an expansionary period, making historical market data less predictive of future results."

Veeco Instruments Inc. v. SGL Carbon, LLC et al, 1-17-cv-02217 (NYED November 2, 2017, Order) (Chen, USDJ)