Implication Of eBay For Non-competes, Other Entities

Originally published in IP law 360, September 2, 2008.

The eBay v. MercExchange ("eBay") case has affected the issuance of a permanent injunction in patent cases. Previously, a permanent injunction was issued after a patent was determined to be valid and infringed. In May 2006, the Supreme Court ruled in eBay case that for a permanent injunction to be issued a four-part test would have to be satisfied beyond the previously held precedent of patent validity and infringement.

To be granted an equitable relief such as permanent injunction, a plaintiff must demonstrate:

1. That it has suffered an irreparable injury;
2. That remedies available at law, such as monetary damages, are inadequate to compensate for that injury;