Luminara Worldwide, LLC v. Liown Electronics Co. Ltd.
Addressing whether the district
court erroneously granted a preliminary injunction, the US Court of
Appeals for the Federal Circuit reversed the district court,
finding that the injunction rested on an incorrect claim
construction and that under the proper construction, a substantial
question of validity precludes granting a preliminary injunction.
Luminara Worldwide, LLC v. Liown Electronics Co. Ltd., No.
2015-1671 (Fed. Cir., Feb. 29, 2016) (Moore, J).
Luminara's predecessor,
Candella, acquired substantial rights from Disney Enterprises with
respect to several patents covering flameless candle technology.
Candella then sued Liown for patent infringement, resulting in a
settlement. After Liown obtained its own patent on artificial flame
technology, Liown told Candella that it would no longer comply with
the settlement agreement, and began selling flameless candles to
Candella's exclusive customers.