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Court Watch

By Cynthia M. Klaus and Susan E. Tegt

CA Federal Court Seeks to Clarify eBay's Application of the Presumption of
Irreparable Harm

A California federal district court recently declined to apply a presumption of irreparable harm when it granted a franchisor's motion for a preliminary injunction on the franchisor's trademark infringement claim. 7-Eleven, Inc. v. Dhaliwal, No. 12-CV-02276-KJM-GGH, 2012 WL 5880462 (E.D. Cal. Nov. 20, 2012). The district court's conscious decision not to apply the presumption marks a step in the Ninth Circuit in clarifying whether the U.S. Supreme Court's determination in eBay Inc. v. MercExchange, LLC, 547 U.S. 388, 394 (2006), holding courts should not presume irreparable harm in patent infringement cases, applies also to trademark infringement claims. The 7-Eleven decision is important because its interpretation of the applicability of the eBay decision to trademark and copyright infringement actions is, and will continue to be, a recurring issue before courts nationwide.

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