3. If there is no infringement, but the injunction was brought to slow down a fast-moving new competitor, would it make any difference in the strategy Tim should employ?

Entrepreneur Tim Hayden had created a service called SkyBOX which could stream videos and statistics to sports fans over their 3G cell phones (like the iPhone). It had taken four years to launch the service, which originally was going to require military-grade hardened wireless PDAs and wiring stadiums for Wi-Fi, but had been reconfigured to run on Internet-ready cell phones.
Professional teams in baseball, football, basketball, and hockey had seen SkyBOX and were enthusiastic about its deployment. However, there were competitors to the SkyBOX. One of the largest was Major League Baseball, who was developing their own iPhone application to tie fans into MLB video feeds and statistics.
Executives at Apple liked the SkyBOX so much they made it their Feature Product on the iTunes home page.
It wasn’t clear if MLB’s team saw this or not, but it was at that moment that they served Vivid Sky with a cease-and-desist claiming that the SkyBOX used content that was copyrighted. In addition, MLB contacted Apple and demanded that the SkyBOX application be pulled from the iTunes Store. Executives from Apple refused to pull the SkyBOX application. However, they wanted Vivid Sky to work out a solution with MLB.