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"We agree with Microsoft, however, that the district court should not have invoked the presumption of irreparable harm applicable to copyright infringement claims," without clearly spelling out its reasons, Schroeder wrote.
Sun also accused Microsoft of unfair competition under California law. The district court entered an injunction on that claim solely on the basis of Microsoft's past conduct, the appeals court said today.
"Microsoft correctly contends that under California law an injunction must be based on the prospect of future conduct. We therefore also vacate the injunction insofar as it relates to the unfair competition claim and remand for consideration of that issue," the appeals court said.
Sun filed its lawsuit against Microsoft back in 1997, accusing the software maker of using an impure version of Java in its products in order to undermine Java's promised "write once, run anywhere" capabilities. Microsoft maintains it was within its legal rights to make changes to the version of Java it used in its products, and said its intention was to allow customers and developers to take advantage of features specific to the Windows operating system.
A trial date for the lawsuit has not yet been set.