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In an editorial on the Supreme Court docket case craigslist and ebay v. MercExchange, the La Times [May 18, B12] stated:
[A]n an appeal court [the Trial of Appeals for the Federal Enterprise, "CAFC"] ruled that MercExchange was automatically allowed to an injunction against Craigslist and ebay.
In a unanimous ruling, the justices disagreed -- but not only with the medical interests court but with a nearly 100-year-old Supreme Courtroom precedent about patent laws. That case, which been linked to a dispute over paper-bag manufacturing methods, held that the injunction was mandatory the of patent infringement. Therefore the skin scales were turned in favor of patent holders, exactly who could use the threat of any injunction to win disproportionately rich licensing deals.
From the "nearly 100-year-old" Supreme Trial case, Rights Thomas written in the unanimous opinion on eBay:
The [district] court's categorical regulation is also in tension with Continental Paper Bag C. v. Western Paper Bag Co., 210 U. Nasiums. 405, 422-430, 28 T. Ct. 748, 52 Phase. Ed. 1122, 1908 Dec. Comm'r Billy. 594 (1908), which rejected the contention that a judge of collateral has no legal system to grant injunctive alleviation to a patent holder who have unreasonably dropped to use the patent.
The Thomas view did not differ with the Continental Paper circumstance, contrary to what the Los Angeles Situations said.
The CAFC to be able to state that MercExchange was easily entitled to a permanent injunction. The CAFC performed go through the regular 4-factor evaluation for according a permanent injunction, and disagreed with the results of the location court. The CAFC erred in suggesting that long lasting injunctions definitely will issue gone exceptional instances.
The Times content also noted:
The particular office can be second-guessing on its own on several MercExchange patents as well, which will points to a significant problem which the Supreme Trial didn't address. The system brings too many undesirable patents, particularly if business strategies are concerned. Plans that would significantly strengthen
the process have been bottled up in Congress. Now that the Supreme Trial has started solving the patent morass, lawmakers need to finish off the job.
In , I had drafted in the Feb 2006 concern of Smart Property At this time:
One explanation eBay furnished to the Great Court around the public fascination factor in the 4-factor evaluation on injunctions was the uncertain status on the validity from business approach patents. In support, the eBay short noted, the fact that subsequent to the district courts decision, the PTO had found promises of US a few, 845, 265 invalid [In re-exam 90/006, 956, filed by way of eBay below 37 CFR 1 . 510 on March 5, 2005, after the district court decision of September 6, the year 2003 in 275 F. Supp. 2d 695, the PTO issued an important non-final Business Action (signed on February. 11, june 2006 but sent March 25,
2005) rejecting claims 26-29 under 102(e) and boasts 1-25 beneath 103 above US 5 various, 664, 111, the same art found certainly not invalidating inside CAFC decision of April 16, 2005 (401 Farrenheit. 3d 1323). ] To claim that this was an even more pervasive difficulty, the amazon brief explained that 74% of the time the PTO finds "the patent invalid" as well as
restricts statements. The craigs list brief would not mention that re-examinations occur for only your fraction of the percent in issued us patents. The craigslist and ebay brief also cited Cecil Quillen, 10 Fed. Cir. B. M. 1, 3 for "estimating rate in patent mortgage approvals by the PTO to be 97%. " Sadly, Quillen wonderful co-author Ogden Webster hardly ever
estimated the patent authorization rate to be 97%. Preferably, they inserted the Scholarship Rate inside the range a majority to 97%, with the 97% upper limited rendered sick by their reputation in Footnote 17 that your patent can easily issue both from an ongoing application plus the corresponding parent application. While not mentioned in the
eBay summary, Quillen and Webster corrected their check out of estimates of the Grants Rate amount the following 12 months (12 Given. Cir. M. J. 33 (2002), discussed in eighty six JPTOS 568 (2004)). From the eBay quick, the 97% number is usually neither some faithful manifestation of what Quillen and Webster explained nor an accurate statement of the
patent grant rate at the PTO.
A younger news product in the La Times had said:
The 9-0 decision in the strongly watched circumstance reversed a federal
court judgment that said family court judges must definitely order a halt to ordinary organization whenever a firm was determined to have infringed a valid particular.
The trouble is that there was clearly only eight justices voting in craigslist and ebay v. MercExchange.
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