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Preliminary Injunctions in Patent Litigation

By William K. Wells
June 28, 2005

Motions for preliminary injunctions have become effective weapons in patent infringement litigation. One of the most important benefits to a patentee is quick relief, since a motion for preliminary injunction may be heard within weeks after a patent lawsuit is filed. Preliminary injunctions may also promote settlement, since if the injunction is granted, the effect can be devastating to a defendant. If the accused device or method is a central part of the defendant's business, an injunction may ruin the defendant financially. On the other hand, if the motion for preliminary injunction fails, a defendant may be much less willing to settle, since the defendant's invalidity and/or non-infringement positions may have been bolstered by denial of the preliminary injunction, not to mention the fact that the defendant's success was likely obtained at significant expense.

Indeed, the expense associated with a preliminary injunction can be considerable, depending on the local rules of the court. For example, in H.H. Robertson, the court conducted a 4-day mini-trial that included testimony of witnesses, briefings and arguments. H.H. Robertson Co. v. United Steel Deck, Inc., 820 F.2d 384 (Fed. Cir. 1987). Similarly, in Hybritech, the court permitted limited discovery in preparation for a 2-day hearing with briefing and argument. Hybritech, Inc. v. Abbott Laboratories, 849 F.2d 1446 (Fed. Cir. 1988). However, in some courts, preliminary injunction hearings are limited to argument on the briefs, declarations and affidavits. No live testimony is permitted. See, e.g., Local Rules of N.D. Cal. It is therefore important to consult both local rules of court as well as local counsel before deciding to seek a preliminary injunction.

Another factor to consider is that if a preliminary injunction is granted, the patentee will be required to post bond as security for damages to the infringer in the event that the injunction is determined to be wrongfully granted. Fed. R. Civ. P. 65(c). Bond premiums can be substantial, easily running into the hundreds of thousands or even millions of dollars.

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