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CSIRO v. Buffalo Tech. : A Permanent Injunction Trump Card for Patent Trolls?

By Andrew N. Stein
August 29, 2007

The recent CSIRO v. Buffalo Technology, Inc. case just might have been the trump card for which a traditional patent troll was waiting so that it could finally visit the promised land of a permanent injunction. 2007 U.S. Dist. LEXIS 43832 (E.D. Tex. Jun. 15, 2007). Unfortunately for the trolls, however, the impact of this opinion will not be as far reaching and applicable to their business model as they might hope.

Background: eBay v. MercExchange

The patent injunction issue has been widely discussed since the Supreme Court considered it last year. In eBay v. MercExchange, 126 S.Ct. 1837 (2006), Merc- Exchange was a patent-holding and non-manufacturing entity that held a business-method patent for an electronic market designed to facilitate the sale of goods between consumers. In this case, the Supreme Court ultimately decided that a patent litigation is no different from any other case in which a permanent injunction is sought, and as a result, held that a permanent injunction's propriety should be judged according to the well-established principles of equity. Thus, the following four factors must be satisfied before a permanent injunction will issue after a finding of patent infringement: 1) the plaintiff has suffered an irreparable injury; 2) remedies available at law, such as monetary damages, are inadequate to compensate for this injury; 3) an equitable remedy is warranted, given the balance of hardships between the plaintiff and the defendant; and 4) the public interest would not be disserved by a permanent injunction. eBay, 126 S.Ct. at 1839.

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