Tuesday, August 3, 2010

Infringing Sale of Equipment Creating "Long-Lasting Business Relationship" Creates Irreparable Harm Sufficient to Warrant Preliminary Injunction

In recommending that plaintiff's motion for a preliminary injunction be granted, the magistrate judge found that plaintiff had established a likelihood of irreparable harm. "[T]he court takes note of the unique nature of the equipment at issue in this case when assessing irreparable harm. Unlike fungible goods, the record evidences that Plaintiff and Defendant's poultry equipment is large, custom, expensive, and designed to last a significant lifetime of production. The record evidences that once a poultry factory purchases one of these systems, it is unlikely they will reenter the market place for a significant number of years. Thus, each sale of equipment is the likely formation of a long-lasting business relationship."

Morris & Associates, Inc. v. Cooling & Applied Technology, Inc. et al., 5-09-cv-00023 (NCED July 30, 2010, Memorandum & Recommendation) (Daniel, M.J.)

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