Third Circuit: Inferences Of Irreparable Harm Permissible In Seeking Preliminary Injunction

Although plaintiffs seeking a preliminary injunction in Lanham Act cases are not entitled to a presumption of irreparable harm, they can rely on inferences of harm, the Third Circuit has ruled.

In Groupe SEB USA, Inc. v. Euro-Pro Operating LLC, a manufacturer of steam irons sued a competitor for false advertising under Section 43(a) of the Lanham Act, alleging that the competitor's advertising wrongly stated that its product delivered more steam at half the price. No. 14-cv-2767, 2014 WL 7172253, at *9 (3d Cir. Dec. 17, 2014). Following the district court's grant of plaintiff's motion for a preliminary injunction, the defendant appealed, arguing, among other things, that the manufacturer failed to establish a likelihood of irreparable harm.

The Third Circuit noted that under Ferring Pharmaceuticals, Inc. v. Watson Pharmaceuticals, Inc., courts may award preliminary injunctive relief under the Lanham Act only upon a "clear showing" of a likelihood of irreparable harm. 765 F.3d 205 (3d Cir. 2014). That decision relied on eBay, Inc. v. MercExchange, LLC, in which the Supreme Court held that patent plaintiffs are not entitled to a presumption of irreparable injury.

The defendant in Groupe SEB USA argued that the district court erroneously...