CAFC Making it Easier to Get an Injunction?
Several weeks ago, the Federal Circuit issued an interesting decision in Aria Diagnostics v. Sequenom, which seems to continue a recent trend showing that at least certain panels of the Federal Circuit would like to see a different interpretation by district courts relative to the injunction standards.
Aria (known as Ariosa Diagnostics, Inc. at the time of appeal) sought a declaration that its Harmony test did not infringe any claim of U.S. Patent No. 6,258,540 (the ’540 patent), owned by defendant Isis Innovation Limited (Isis) and licensed by Isis exclusively to Sequenom, Inc. Sequenom counter-claimed, alleging that Ariosa’s Harmony test infringes the ’540 patent. The United States District Court for the Northern District of California denied Sequenom’s motion for a preliminary injunction to prevent Ariosa from making, using, or selling that test. However, the Federal Circuit (per Chief Judge Rader, with Judges Dyke and Reyna) determined that the district court incorrectly interpreted the asserted claims and improperly balanced factors regarding issuance of a preliminary injunction.
Most interesting was the discussion about how the district court failed to properly consider the familiar four-factor injunction test. The district found that price and market erosion would occur. Under Federal Circuit precedent, price erosion, loss of goodwill, damage to reputation, and loss of business opportunities are all valid grounds for finding irreparable harm. Yet, the district court denied the injunction for four specific reasons.
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08.26.13 | CAFC, Patent Issues | Gene Quinn