Maxwell gets preliminary injunction against NessCap

A federal court in the Southern District of California has issued an order finding that Maxwell Technologies (NASDAQ: MXWL) has established a likelihood of its success in the patent infringement action it has filed against NessCap, Inc. and NessCap, Ltd. ("NessCap") in October 2006, and cleared the way for an injunction.

Maxwell maintains that NessCap's ultracapacitor products infringe on two of its U.S. patents.

The court determined that Maxwell would be irreparably harmed if a preliminary injunction does not issue.

The injunction is to prohibit Nesscap from making, using, selling or offering to sell its prismatic ultracapacitors in the United States while the litigation is pending.

The court rejected NessCap's arguments that the patent likely is invalid based on prior art and an "on-sale bar."

The preliminary injunction will become effective once the court determines the amount of a bond that will be posted while the injunction is in place.

After Maxwell brought its infringement action against NessCap in San Diego in October 2006, NessCap filed a patent infringement action against Maxwell in federal district court in Delaware. In January, over NessCap's objection, Maxwell moved to have the Delaware action transferred to the district court in San Diego. The request was granted.

Both lawsuits are therefore to be decided by a court and, if necessary, a jury, in federal district court in San Diego.

Maxwell is a leading developer and manufacturer of innovative energy storage and power delivery solutions, based in San Diego.

NessCap is a privately held company based in Seoul, South Korea.

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