Sans Agreement, Patent Exhaustion Still Matters

Law360, New York (February 26, 2009, 12:00 AM EST) -- In Quanta Computer Inc. v. LG Electronics Inc., 128 S.Ct. 2109 (2008), the Supreme Court reinvigorated the doctrine of patent exhaustion as a defense to patent infringement.

In addition to giving the defense of patent exhaustion new life, this decision should cause patent practitioners to consider patent exhaustion issues when drafting licenses and settlement agreements.

Another, albeit possibly unintended, effect of Quanta is that parties need to consider patent exhaustion even when there is no voluntary license or settlement agreement.

For example, a past damages award...
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