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IP News

By Howard Shire and Michael Block
August 01, 2017

Federal Circuit Vacated The Denial of an Injunction Because a Causal Nexus for Multi-Feature Products Only Requires a Feature to be 'A Driver' of Demand

On July 10, 2017, a Federal Circuit panel of Judges Lourie, Taranto, and Chen issued a unanimous decision, authored by Judge Taranto, in Genband US LLC v. Metaswitch Networks Corp., Case No. 2017-1148. The panel vacated the denial of an injunction by the United States District Court for the Eastern District of Texas in No. 2:14-cv-00033-JRG and remanded to consider whether there was an independent ground for otherwise denying an injunction.

Genband US LLC (“Genband”) sells products and services to telecommunications companies that assist with “voice over IP” services. Metaswitch Networks Corp. and Metaswitch Network Ltd. (together, “Metaswitch”) competes with Genband's offerings. In 2014, Genband asserted several U.S. patents against Metaswitch, which was growing as a competitor. In 2016, a jury awarded $8,168,400 in damages to Genband after it found that Metaswitch infringed all asserted claims, and that those claims were not invalid. In a subsequent bench trial, the district court denied Genband's request for a permanent injunction because it found that Genband would not suffer irreparable harm from Metaswitch's continued infringement.

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