Applying the Supreme Court's eBay Decision, Texas Court Denies Injunctive Relief to Patent Owner

June 19, 2006

On June 14, 2006, in a matter pending in the Tyler Division of the Eastern District of Texas, U.S. District Judge Leonard Davis denied entry of a permanent injunction against Microsoft in what appears to be the first application of the Supreme Court’s ruling in eBay, Inc. v. MercExchange (2006).

In z4 Technologies, Inc. v. Microsoft Corporation and Autodesk, Inc., a jury found that Microsoft willfully infringed two patents asserted by z4 Technologies that disclosed methods for limiting the unauthorized use of computer software.  The jury rejected the invalidity contentions raised by the defendants and awarded z4 Technologies $115 million in damages against Microsoft and $18 million against Autodesk.

In a motion for permanent injunctive relief against Microsoft, z4 Technologies sought to prevent Microsoft from using, selling, offering for sale, and/or importing infringing software products, including Windows XP products.  z4 Technologies also sought an order deactivating Microsoft servers “that control product activation for Microsoft’s infringing products and to re-design its Windows and Office software.”

If you would like any additional details regarding this case, please contact your Sonnenschein attorney or Matt Vlissides (mvlissides@sonnenschein.com) at 202.408.5376.

Click here to read the e-Alert.


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