EBAY INC. V. MERCEXCHANGE, L.L.C.
547 U.S. 388 (2006)
NATURE OF THE CASE: Ebay (D) appealed a reversal of a decision that held a permanent
injunction will not be applied.
FACTS: MercExchange (P) holds a number of patents, including a business method patent for
an electronic market designed to facilitate the sale of goods between private individuals by
establishing a central authority to promote trust among participants. P sought to license
its patent to eBay (D) as it had previously done with other companies, but the parties
failed to reach an agreement. P filed a patent infringement suit against D. A jury found
that P's patent was valid, that D had infringed that patent, and that an award of damages
was appropriate. The District Court denied P's motion for permanent injunctive relief. The
Court of Appeals for the Federal Circuit reversed, applying its 'general rule that courts
will issue permanent injunctions against patent infringement absent exceptional
circumstances.' The Supreme Court granted certiorari.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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