Standard of Awarding Injunctions In Patent Cases Absent Exceptional Circumstances Is Struck Down By Supreme Court

Lessening the frequency that permanent injunctions may be awarded in patent cases, the Supreme Court on May 15th unanimously decided in EBay Inc. v. MercExchange, L.L.C. that the standard used by the Court of Appeals for the Federal Circuit was a "categorical grant of [injunctive] relief" that was in error. The Court vacated the Federal Circuit's finding that the permanent injunction was supported because "infringement and validity had been adjudged" and no "exceptional circumstances" existed to support denial of the permanent injunction.