Patent Injunction Bill Has Potential to Reshape Disputes

The proposed legislation, “Realizing Engineering, Science and Technology Opportunities by Restoring Exclusive (RESTORE) Patent Rights Act,” introduced to Congress last month, aims to create a presumption that courts should issue injunctions when patent infringement is found. This legislation could significantly strengthen the position of patent owners by making it easier for them to block the sale of infringing products. While supporters argue it would restore patent rights and encourage innovation, critics warn it could give too much power to patent owners, potentially leading to excessive royalties and higher costs for consumers. The bill’s impact would depend on how courts interpret the new presumption, and its passage remains uncertain given its late introduction in an election year.

Sterne Kessler Director Nirav Desai commented, “It’s hard to say whether it will actually result in more injunctions.” He continued, “I think it will certainly result in more requests for permanent injunction, but whether the courts actually grant them at a greater clip will depend on how courts view the fact that the statutory presumption is rebuttable.”

Desai mentioned, “it’s a one-sentence amendment to statute, so there’s not a lot there to help us read the tea leaves to see how courts are going to handle that.” He added that if the bill were enacted and it became clear that injunctions were being granted more often, “we might see some pretty significant changes in IP risk management and strategy” by companies seeking to avoid infringement liability.