The Supreme Court vacated the judgment of the Court of Appeals for the Federal Circuit categorically granting permanent injunctive relief to MercExchange. District courts have the equitable discretion to grant or deny injunctive relief; however, that discretion must be used within the confines of traditional equitable principles. Thus, courts must apply the four-part test traditionally used in equity to claims arising under the Patent Act.
eBay Inc. v. MercExchange, L.L.C.
U.S. Sup. Ct.
May 15, 2006