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Antitrust Keyed to Morgan, 7th Ed.
eBay Inc. v. MercExchange, L.L.C.
Citation:
547 U.S. 388 (2006)Facts
MercExchange held a business method patent (U.S. Patent No. 5,845,265) for an electronic market designed to facilitate sales between private individuals through a central authority. MercExchange attempted to license this patent to eBay and its subsidiary Half.com, as it had done with other companies, but the parties failed to reach an agreement. Subsequently, MercExchange filed a patent infringement lawsuit against eBay in the Eastern District of Virginia. A jury determined that MercExchange’s patent was valid, that eBay had infringed the patent, and awarded damages. Following this verdict, MercExchange sought a permanent injunction to prevent eBay from continuing to use the patented technology. The district court denied this request, citing MercExchange’s willingness to license its patents and its lack of commercial activity in practicing the patents. The Federal Circuit reversed, applying its general rule that courts should issue permanent injunctions against patent infringement absent exceptional circumstances.
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