PRELIMINARY / INJUNCTION INCONSISTENT / WITH STAY, ONE REVERSED

Automated Merchandising Systems, Inc. v. Crane Co., [2009-1158, -1164] (December 16, 2009) [MICHEL, Clevenger, and Dyk] The Federal Circuit reversed the grant of a preliminary injunction, but affirmed the stay pending reexamination.
DISCUSSION: The Federal Circuit found that AMS had not demonstrated it was entitled to a preliminary injunction. The Federal Circuit noted that because it logically seems that there cannot simultaneously be a substantial issue of patentability and no substantial issue of patentability, stays pending reexamination are typically inappropriate in cases in which preliminary injunctions are appropriate. However, since the grant of preliminary injunction was reversed, there was no longer any problem with staying AMS’s claims against Crane pending the outcome of the reexamination process.