Much ink has been spilled of late regarding the proliferation of patent infringement suits brought by companies that buy up patents for the sole purpose of enforcing them, often referred to as “nonpracticing entities” or NPEs. Companies sued by NPEs have argued that the patents NPEs acquire and enforce are weak if not completely invalid. Such defendants also bemoan the litigation costs incurred in disposing of such suits. And in those cases where the NPEs have prevailed, the defendants most assuredly bemoan the judgment or settlement they end up paying to NPEs.
The one thing that companies sued by NPEs have not lost much sleep over lately is the possibility of an injunction. For several years, the law appeared to be generally settled that prevailing NPEs could not obtain injunctive relief. This was based on the notion that a patentee who does not compete with the defendant in the marketplace cannot suffer “irreparable harm” from an infringement and could not establish that money damages are inadequate.
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