Applying Exhaustion To Combined Components

Law360, New York (February 17, 2010, 1:13 PM EST) -- Under the patent exhaustion doctrine, the unrestricted sale of a patented item exhausts the patent holder’s rights over that particular item. The patent holder therefore may not sue the purchaser or any downstream purchasers for patent infringement by that item.

In Quanta Computer Inc. v. LG Electronics Inc. (2008), the U.S. Supreme Court further held that the unrestricted sale of only one of several components used to practice a patent can also exhaust the patent, as long as that one component “substantially” embodies the patent....
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.