equity - Justice according to fairness as distinguished from the automatic application of law. In the sense used in this brief article, equity refers to a system of law originating in England and comprising a body of substantive and procedural rules and doctrines that supplement or override common and statutory law. Historically, courts of equity arose in England from a need to provide relief for claims that did not conform to the system in the courts of law. While the courts of equity originally exercised great discretion in fashioning remedies, over time, they established precedents and doctrines that were distinct from those used in the courts of law. Today the courts of law and equity are united in England and in the US federal system and they apply both legal and equitable principles and offer both legal and equitable relief, although generally equitable relief is still granted when there is no adequate remedy at law. Equity is also used to refer to the principles that developed in the courts of equity and to the body of rules developed in the courts of equity.

“The Court found that rules of equity should govern whether courts grant a permanent injunction in litigation arising under the Patent Act.”

Other common uses of equity:
Attorneys who practice banking and finance and corporate law commonly use the term equity to describe the money value of a property, or a risk interest or ownership right in property such as the ownership interests of shareholders in a company. It may also be used to refer to the common stock of a company. “The company said it plans to defer a $150 million equity offering to later in 2006.”