Potential Impact of Section 106 of the Stronger Patents Act on the Biotechnology Industry

2020Patent

Jeffrey Buckman

A permanent injunction is the strongest remedy available to a patent holder in a patent infringement case. Throughout much of U.S. patent litigation history, plaintiffs were presumptively entitled to a permanent injunction when a defendant infringed the plaintiff’s valid patent. In 2006, however, in eBay Inc. v. MercExchange, the Supreme Court of the United States altered the standard for awarding permanent injunctions in patent infringement cases. In eBay, the Court held that patent holders are not presumptively entitled to permanent injunctions and instead must satisfy the traditional four-factor permanent injunction test. In June 2019, the House of Representatives introduced the STRONGER Patents Act to strengthen the United States patent system. Section 106 of the STRONGER Patents Act, if enacted, would reduce the burden of the four-factor test on patent holders seeking permanent injunctions. This Essay examines the potential effects of Section 106 on the biotechnology industry and argues for its passage.

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