Will there be Unintended Consequences from the Supreme Court Decision in eBay v. MercExchange?

Although receiving most publicity as a possible step in the path of patent reform, the eBay v. MercExchange case may have altered the landscape in obtaining permanent injunctions generally, and thus may have unintended and unforeseen consequences in other areas of the law.

From the unanimous opinion (Thomas, J.) in eBay v. MercExchange, 126 S. Ct. 1837, 1839; 164 L. Ed. 2d 641, 645-646, 78 USPQ2d 1577 (2006) :

According to well-established principles of equity, a plaintiff seeking a permanent injunction must satisfy a four-factor test before a court may grant such relief. A plaintiff must demonstrate: (1) that it has suffered an irreparable [164 L.Ed. 2d 646] injury; (2) that remedies available at law, such as monetary damages, are inadequate to compensate for that injury; (3) that, considering the balance of hardships between the plaintiff and defendant, a remedy in equity is warranted; and (4) that the public interest would not be disserved by a permanent injunction. See, e.g., Weinberger v. Romero-Barcelo, 456 U.S. 305, 311-313, 102 S. Ct. 1798, 72 L. Ed. 2d 91 (1982); Amoco Production Co. v. Gambell, 480 U.S. 531, 542, 107 S. Ct. 1396, 94 L. Ed. 2d 542 (1987).

Odetics v. Storage Technology, 14 F. Supp. 2d 785, 794 (ED Va 1998), cites Weinberger as follows:

Issuance of injunctive relief against STK is governed by traditional equitable principles, which require consideration of (i) whether the plaintiff would face irreparable injury if the injunction did not issue, (ii) whether the plaintiff has an adequate remedy at law, (iii) whether granting the injunction is in the public interest, and (iv) whether the balance of hardships tips in the plaintiff's favor. See Weinberger v. Romero-Barcelo, 456 U.S. 305, 312, 72 L. Ed. 2d 91, 102 S. Ct. 1798 (1982).

The district court decision in eBay, 275 F. Supp. 2d 695 (ED Va 2003) , relied on this text.

EBay's brief to the Supreme Court, 2005 U.S. Briefs 130, cites Weinberger in the following way:

This Court could stop there because "the equitable remedy is unavailable absent a showing of irreparable injury," Los Angeles v. Lyons, 461 U.S. 95, 111 (1983), and "the inadequacy of legal remedies." Weinberger v. Romero-Barcelo, 456 U.S. 305, 312 (1982).

The na