To: barty who wrote (143317 ) 7/5/2006 9:10:41 AM From: slacker711 Respond to of 152472 This US courts seem to be changing tact here, but I've one question though - you suggest that injunction looks likely for US imports - but what makes this case any different to eBay vs. Mercexchange? see below... A couple of thoughts on the case... The first set of injunctions that I expect are going to be coming from the ITC. The ITC doesnt have the option of awarding monetary damages....the only remedy that they have is for an injunction against imports. The view that I have found is that the Ebay ruling makes it more likely that companies will go to the ITC. I dont see the ruling as having much (if any) effect on the current ITC GSM patent case against Nokia or the future WCDMA case.www1.jonesday.com Even beyond that, however, eBay may have other repercussions on the international scene: if eBay ushers in an era where injunctions are harder to obtain in district courts, <b.some patent owners may turn with greater frequency to actions in the International Trade Commission (“ITC”) under Section 337 of the Tariff Act. Generally speaking, Section 337 allows the ITC to issue exclusion orders prohibiting the importation into the United States of infringing articles. Unlike a motion for a permanent injunction in federal court, however, such exclusion orders are in rem; they bind all infringers and potential infringers, including foreign parties; and they are enforced at the border by the U.S. Customs Service. More significant, perhaps, is the fact that ITC exclusion orders are available without the patent owner being required to satisfy the four-part injunctive relief test. The second half of the question is the effect on future federal court rulings. The court ruled that injunctions arent the "general rule" but must meet a four factor test. I think your link gives an idea as to the effect on Qualcomm.corporatedealmaker.thedealblogs.com Patent owners who compete in the marketplace will have the strongest case for an injunction, particularly against direct competitors. The inability to exclude infringing competition can spell the loss of precious market share forever. Those who gain no more than negotiating power from an injunction, by contrast, will have a much harder time. Money damages fully compensate your average patent troll; he only seeks money in the first place. And if a troll and an infringer can’t come to terms, it’s hard to argue the public interest favors banishing products from the marketplace. Qualcomm is a pretty clear competitor to Nokia both strictly in terms of WCDMA market share but (particuarly in the US) in terms of CDMA2000 versus WCDMA. Going straight to the source....the concurrent opinions to the unanimous ruling by Justice Roberts and Justice Stevens also provide some clues as to the effect. Roberts emphasizes that though there is no entitlement or general rule as to an injunction, the long history of injunctions should still be used as a guide. Stevens also emphasizes that historical practice of injunctions should still be used as a guide when cases bear substantial similarities to previously litigated cases. He departs from Roberts when he comments on the new industry of patent holders not developing products with their patents but rather just using them as a source for license fees. His comments imply that this is where he sees the best use for legal damages rather than injunctive relief.supremecourtus.gov We'll have to wait and see how the lower courts interpret this ruling but the overall effect on any WCDMA lawsuits would seem to be limited. Actually, the primary effect I can see is that this case would seem to make a straight split between QTL and QTC less likely. QTL might fall under Justice Stevens comments about patent only companies only being due damages rather than injunctions. I am going to have rethink a post I was in the midst of writing about the possible Spinco variants. Note though that PJ's comments about new form of Spinco came before the Ebay ruling....so whatever Q's reasons for not doing a straight split, they probably arent related to this ruling. Slacker