eBay vs. MercExchange Case

The eBay vs. MercExchange case was about determining when courts can grant a permanent injunction to stop patent infringement. MercExchange held a patent that eBay used without permission. The U.S. Supreme Court ruled that courts should not automatically issue injunctions; instead, they must consider factors like whether the patent holder's rights are being harmed and if monetary damages are enough. This case clarified that patent owners can't always get a court order to stop infringing activity unless they prove that such an injunction is justified, balancing innovation protection with fair competition.