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Intellectual Property Keyed to Merges
eBay, Inc. v. MercExchange, LLC
Facts
MercExchange, LLC (Plaintiff) held a business method patent for an electronic sales market using a central authority. It attempted to license its patent to eBay, Inc. (Defendant), but the parties failed to reach an agreement. eBay (Defendant) proceeded with its website that allowed private sellers to list goods for sale at auction or at a fixed price. MercExchange (Plaintiff) filed suit for patent infringement. A jury found the patent invalid and awarded damages to Plaintiff for Defendant’s infringement. Plaintiff filed a motion for a permanent injunction, but the district court denied it. Plaintiff appealed and the federal circuit reversed based on the general rule that courts will grant permanent injunctions in patent infringement “absent exceptional circumstances.” eBay (Defendant) filed its petition for a writ of certiorari, which the United States Supreme Court granted to determine the appropriateness of the general rule on permanent injunctions in patent infringement cases.
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