A Recent Federal Court Decision: Interlocutory Injunctions in Patent Matters

1997-01-01

ARECENTFEDERALCOURTDECISION:INTERLOCUTORYINJUNCTIONSINPATENT
MATTERS

by
DarioPietrantonio
LEGERROBICRICHARD,Lawyers
ROBIC,Patent&TrademarkAgents
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InthematterofLesInventionsMorinInc.andLesEquipmentsArmandMorin
Inc.v.GilbertTechInc.(T–1398–95,F.C.T.D.,October7,1996,unreported)
plaintiffsbroughtanactionalleginginfringementoftheirCanadianpatent
No.1,269,028.relativetosawteethusedinthelumberindustryforthepurpose
offellingtrees.Thepatentedsawtoothinquestioniscomposedoffour
cuttingedgesandisdirectlyconnectedtoashafttherebyallowingforsaid
toothtopivotinsuchafashionastomaximizeitscuttingefficiencyby
inflictingfourcutsinsteadofone.
Defendant’ssawtooth,ontheotherhand,iscomposedofthreecutting
edgesinsteadoffour,andisconnectedtoashaftbywayofascrew.
Furthermore,defendant’stoothisnotcompatiblewithplaintiff’svarious
modelsoftreefellerheadsunlesssubstantiallyalteredforthispurpose.

Theplaintiffsallegedlyonlylearnedofdefendant’ssawtoothonorabout
April1995andproceedingswereinstitutedinJulyofthesameyear.
Approximatelyoneyearafterhavinginitiatedtheiraction,plaintiffsmovedfor
aninterlocutoryinjunctionorderingdefendanttoceasedealinginthe
allegedlyinfringingsawtooth.
Afterhavingreviewedthefactsofthecaseandtheargumentsputforthby
theparties,JusticeRichardproceededtoexaminethestateofthelaw
concerninginterlocutoryinjunctions.Insodoing,thecourtidentifiedthe
SupremeCourtdecisionsinManitoba(A.G.)v.MetropolitainStores,(1987)1
S.C.R.,andR.J.R.–MacdonaldInc.v.Canada(A.G.),(1994)1S.C.R.311as
providingtheguidingprinciplestobeappliedwhendecidingwhethersuch
aninjunctionshouldissue.Thesaiddecisionsarebasedonthreecriteria
whichwerecontemplatedinAmericanCyanamidCo.v.EthiconLtd.(1975)
A.C.396(HouseofLords),andlaterimportedintoCanadianlaw:(i)Istherea
seriousissuetobetried;(ii)Wouldnotgrantingtheinjunctioncinirreparable

harmfortheplaintiff;(iii)Whomwouldsufferthegreaterinconvenience
subjecttothecourt’sdecisionconcerningthegrantingoftheinjunction.
SeriousIssueToBeTried

ThecourtacknowledgedboththeexistenceoftheMorinpatentandthe
apparentseriousnessoftheGilbertdefenceandnotedthattheproceedings
werenotprimafaciefrivolous.Basedonthesefacts,RichardJ.determined
thatthematterwarrantedbeingherdonitsmeritsandthattheretherefore
appearedtobeaseriousissuetobetried.
IrreparableHarm

Theirreparableharmrequirementisoftenthemostdifficulthurdleforthe
movingpartytoovercome.Duetotheexceptionalnatureoftheremedy,
thecourtshaveraisedthestandardsregardingthenatureoftheevidence
whichmustbepresentedunderthisheading.Theharmcannotbeinferredor
implied.Inordertosatisfythecourt,plaintiffmustestablishwithclear
evidencethatitwouldsufferirreparableharmshouldtheinjunctiveremedy
requestedberefused.
RichardJ.alsopointedoutthatmotionsforinterlocutoryinjunctionsinpatent
infringementcasesarerarelysuccessfulduetotheverynatureoftherights
grantedbyapatent.Inmostsituationswhereinfringementisfound,
monetarycompensationprovestobeanadequateremedyforplaintiffs.
Plaintiffsreliedsolelyonaffidavitevidencemadebytheirinternalcontroller.
Thisevidencewasdeterminedtobetobeinsufficientandtherefore
unacceptable.Thecourtalsoquestionedtheaccountant’scompetence
concerningsomeoftheissuesraisedintheaffidavitastosafetyandtheease
withwhichtheMorintoothcouldbecopied.
BalanceofInconvenience

Thecourtconsideredthefollowingfactsinevaluatingthiscriteria:plaintiffs
produce29differentmodelsofteethwhiledefendantproducesonlyonesaw
toothmodel;defendantproducesitssawtoothasanaccessoryforitstree
feller;defendant’ssawtoothcannotbeusedinconjunctionwithplaintiff’s
treefellerheadunlessalteredforthispurpose;plaintiffs’yearlysalesare
approximately50%greaterthanthoseofdefendant;only35%ofplaintiffs’
sawteethareofacomparablesizetothatofdefendant;only12.7%of
plaintiffs’salespertaintosawteethofasizesimilartothatofdefendant;
plaintiffs’marketisessentiallyCanada–widewiththeexceptionofeastern
Quebec;defendant’smarketisprimarilyeasternQuebec.

Afterhavinganalyzedtheabove–mentionedfacts,thecourtconcludedthat
plaintiffshadfailedtoshowthatthebalanceofinconveniencesleanedin
theirfavour.
Comment
Irreparableharmhasbecomeasizeableobstacleforpartiesseeking
interlocutoryinjunctionsforitisoftenquitedifficulttoproduce”clear
evidence”ofirreparableharmatsuchanearlystageoflitigation
proceedings.Inpatentmatterstheissueisfurthercompoundedbythefact
thatthecourtsoftentakeforgrantedthatthepartywhomhassufferedharm
duetoaninfringementofitspatentrightscanbeadequatelycompensated
byamonetaryawardofdamages.Althoughthismayoftenbethecase,itis
notalwaystrue.Althoughthecourtsmustexerciseconsiderablecaution
whenconfrontedwithrequestsforexceptionalremediessuchaspreliminary
injunctions,theymustalsoavoidrenderingtheseremediesunaccessibledue
toaburdenofproofwhichistoodemanding.
Publishedat(1997),11W.I.P.R.004-005underthetitleIrreparableHarmCriteria
PoseObstacletoPatentInjunctionActions.

LEGERROBICRICHARD,1997.

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