Microsoft Corp. v. Harmony Computs. & Elecs., Inc. - 846 F. Supp. 208 (E.D.N.Y. 1994)

Rule:

A party seeking a preliminary injunction must establish both irreparable injury and either (1) a likelihood of success on the merits or (2) sufficiently serious questions going to the merits to make them a fair ground for litigation and a balance of hardships tipping decidedly in favor of the movant.

Facts:

Plaintiff Microsoft Corporation, a developer, manufacturer, and marketer of computer software programs, commenced a copyright infringement action against defendants, Harmony Computers & Electronics, Inc. and Stanley Furst, alleging that the defendants sold, without license or authorization, copyrighted Microsoft MS-DOS and Microsoft Windows software programs and accompanying materials ("Microsoft Products" or "Products"). Plaintiff argued that because defendants were not licensed by Microsoft, they were not legitimately in possession of, and were not entitled to sell, any Microsoft Products, whether counterfeit or not. Based upon plaintiff's ex-parte application and evidence that defendants were illegally copying and distributing its products in violation of plaintiff's rights, the court ordered seizure and impoundment of all of plaintiff's products found at defendant's retail establishment. Plaintiff also filed a motion for preliminary injunction.

Issue:

Under the circumstances, should the court grant plaintiff’s motion for preliminary injunction? 

Answer:

Yes.

Conclusion:

The court noted that a party seeking a preliminary injunction must establish both irreparable injury and either (1) a likelihood of success on the merits or (2) sufficiently serious questions going to the merits to make them a fair ground for litigation and a balance of hardships tipping decidedly in favor of the movant. To establish a prima facie case of copyright infringement, the plaintiff must show that (1) it was the valid owner of a copyright and (2) defendant has engaged in unauthorized "copying." In this case, the court held that plaintiff has submitted certificates of federal copyright registration, which constituted prima facie evidence of the validity of plaintiff’s copyrights. Moreover, the court held that since the defendants were not Microsoft licensees and were not authorized to sell Microsoft Products, any sale of counterfeit Microsoft Products by defendants would violate the federal copyright laws. Accordingly, the court granted the preliminary injunction because plaintiff showed a likelihood of success on the merits, and thus a presumption of irreparable harm on its claim.