Document ID: ./input/supremecourt_opinions/opinions/05pdf/05-130.pdf
Page Number: 4.0

2 

EBAY INC. v. MERCEXCHANGE, L. L. C. 

Opinion of the Court 

parties  failed  to  reach  an  agreement.  MercExchange
subsequently  filed  a  patent  infringement  suit  against 
eBay and Half.com in the United States District Court for 
the  Eastern  District  of  Virginia.  A  jury  found  that  Mer-
cExchange’s patent was valid, that eBay and Half.com had 
infringed that patent, and that an award of damages was
appropriate.1 

Following  the  jury  verdict,  the  District  Court  denied
MercExchange’s  motion  for  permanent  injunctive  relief. 
275 F. Supp. 2d 695 (2003).  The Court of Appeals for the
Federal  Circuit  reversed,  applying  its  “general  rule  that
courts  will  issue  permanent  injunctions  against  patent
infringement  absent  exceptional  circumstances.” 
401 
F. 3d  1323,  1339  (2005).    We  granted  certiorari  to  deter-
mine  the  appropriateness  of  this  general  rule.    546  U. S 
___ (2005). 

II 
According  to  well-established  principles  of  equity,  a
plaintiff  seeking  a  permanent  injunction  must  satisfy  a 
four-factor  test  before  a  court  may  grant  such  relief.    A 
plaintiff  must  demonstrate:  (1)  that  it  has  suffered  an
irreparable injury; (2) that remedies available at law, such
as  monetary  damages,  are  inadequate  to  compensate  for 
that injury; (3) that, considering the balance of hardships
between the plaintiff and defendant, a remedy in equity is
warranted;  and  (4)  that  the  public  interest  would  not  be 
disserved by a permanent injunction.  See, e.g., Weinberger 
v.  Romero-Barcelo,  456  U. S.  305,  311–313  (1982);  Amoco 
Production Co. v. Gambell, 480 U. S. 531, 542 (1987).  The 
decision to grant or deny permanent injunctive relief is an
act of equitable discretion by the district court, reviewable 
on  appeal  for  abuse  of  discretion.    See,  e.g.,  Romero-
—————— 

1 EBay  and  Half.com  continue  to  challenge  the  validity  of  MercEx-
change’s patent in proceedings pending before the United States Patent
and Trademark Office.