Injunctive Relief for Patent Infringement: Senator Coons and Colleagues Unveil Bipartisan Bill
Aug 22, 2024
A major legislative initiative, the Realizing, Engineering, Science, and Technology Opportunities by Restoring Exclusive (RESTORE) Patent Rights Act of 2024, was introduced on July 30th, 2024, by Sens. Tom Cotton (R-Ark.) and Chris Coons (D-Del.). This bipartisan, bicameral bill seeks to rectify a crucial area of patent law that has been compromised during the last 20 years, in conjunction with House counterparts.
Historically, if a court found that a patent was being violated, it would frequently grant an injunction to stop the infringement. This long-standing practice was upended by the Supreme Court’s 2006 decisions in eBay Inc. V. MercExchange, L.L.C. (547 U.S. 388, 2006). It is now much more difficult for patent holders, following the eBay case, to get relief creating four-factor criteria deciding whether an injunction should be granted. Due to this, there are less approvals and requests of injunctions. It’s created a hostile environment for small innovators who are unable to compete when their invention is being infringed.
In an effort to counteract these changes, the RESTORE Act introduces the rebuttable presumption that, in the event that a court determines that a patent has been violated, a permanent injunction should be issued. This means the court will initially assume that an injunction is the right remedy. However, the infringer can argue against this and try to prove why an injunction shouldn’t be granted. The patent owner would then be entitled to a rebuttable presumption of receiving an injunction if a court provides a final judgment confirming infringement, according to this clause amending section 283 of the Patent law.
In other words, barring the infringers ability to show otherwise, the court would begin at the point where it believes an injunction should be issued. With the goal of restoring the effectiveness of patent protection, the legislative amendment will enable patent holders to properly defend their ideas against ongoing infringement.
The significance of the RESTORE Act cannot be understated. In doing so, the bill seeks to address a number of important concerns. First, by making it more difficult for big corporations to take advantage of flaws in the current system, safeguarding innovation. Maintaining an environment for innovation and investment requires this legal protection. Knowing their intellectual property will be protected, patent holders will be more likely to invest in new technology and inventions knowing they can successfully enforce their rights.
Moreover, the RESTORE Act is designed to support US leadership in global innovation and technology. Through ensuring the protection of patents, the bill aims to prevent a decline in the U.S. competitive edge. Because it is less expensive to violate patents than to pay licensing fees, many large firms frequently engage in “predatory infringement” as a result of the current system. This undermines innovators and threatens the country’s position as a leader in technological advancements.
Supporters of the RESTORE Act include the Council for Innovation Promotion, the Innovation Alliance, and Conservatives for Property Rights. These organizations contend that the current lack of ability to obtain injunctive relief permits big businesses to violate patents with little consequence. Despite the support, there is opposition from those arguing that the eBay ruling may not have had as much of an impact on injunctions as previously thought.
In conclusion, the RESTORE Act is a critical step in strengthening patents’ defenses and revitalizing innovation. By reinstating the presumption of injunctive relief, this legislation addresses critical gaps left by the eBay decision curbing the misuse of patent rights by large corporations. Enacting this law would give patent holders the much-needed assurance and support, encouraging further investment, safeguarding the U.S.’s competitive edge in global tech. Embracing this reform is essential for maintaining innovation and ensuring startups can prosper in a robust, fair intellectual property landscape.
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